Eurobank successfully priced its inaugural Green Senior Preferred Notes amounting to €850 million

“Eurobank Ergasias Services and Holdings S.A.” (Eurobank Holdings) announced that its subsidiary “Eurobank S.A.” (the “Bank” or “Eurobank”), successfully completed the pricing of €850 million Green Senior Preferred Notes.

The Notes are expected to be assigned an investment grade rating of “Baa2” from Moody’s, following the Bank’s recent upgrade to investment grade from the same agency.

The inaugural green issuance demonstrates Eurobank’s strong commitment to the sustainability agenda and its dedication to reach net-zero emissions by 2050.

The proceeds of the issuance will be used to finance or refinance a portfolio of Green Eligible Projects selected in accordance with the use of proceeds criteria and selection process as described in Eurobank’s Green Bond Framework, which is in accordance with the ICMA Green Bond Principles (GBP) 2021.

The bond matures on 24 September 2030 and is callable at par on 24 September 2029 (6NC5), offering a coupon of 4% per annum. Settlement will take place on 24 September 2024 and the notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market.

The transaction received a tremendous level of interest from the onset with books higher than €2.5bn within one hour and a half which resulted in a final demand of over €4.5bn, i.e. an oversubscription of over 5.4 times, thus enabling Eurobank to raise 850 million euro at a reduced credit spread of 180bps compared to the initial 210bps indication level. The book attracted strong and geographically diverse demand from international investors, with orders from ca. 270 accounts, representing the largest ever orderbook as well as the highest number of investors placing orders for a Greek senior issuance. The final allocation to ESG focused accounts was higher than 60%.

Upon new issue allocation, foreign investors’ participation accounted for approximately 85% of the amount, with key participation from the United Kingdom and Ireland (34%), France (14%) and Italy (12%). In terms of investor type, 62% were Asset Managers, 22% were Banks and Private Banks, 9% were Hedge Funds and 5% were Insurance and Pension Funds.

The proceeds from the issue will support Eurobank Group’s strategy to ensure ongoing compliance with its Minimum Required Eligible Liabilities (MREL) requirement and will aim at increasing Eurobank’s MREL ratio towards the end-state MREL targeted compliance range.

BNP Paribas, BofA Securities, Commerzbank Aktiengesellschaft, Goldman Sachs Bank Europe SE, HSBC Continental Europe and Nomura Financial Products Europe GmbH acted as Joint Lead Managers.