Eurobank announced today that it has successfully completed the pricing of its €850 million Green Senior Preferred.

The Bond is expected to receive an investment grade credit rating of “Baa2” from Moody’s rating agency, following the Bank’s recent upgrade to investment grade by the same agency. This first green issue for the Bank demonstrates its firm commitment to sustainability and its goals of net zero carbon emissions by 2050.

The proceeds of the issue will be channeled into the financing or refinancing of a portfolio of eligible green investments based on the criteria for the use of funds and the selection process, as described in Eurobank’s Green Bond Framework, which is in line with the ICMA Green Bond Principles (GBP) 2021.

The bond has a maturity date of September 24, 2030, callable at par on September 24, 2029 (6NC5), and an annual coupon of 4%. The settlement date is 24 September 2024 and the bonds will be listed on the Luxembourg Stock Exchange (on the Euro MTF market).

The transaction, as highlighted, was received with extraordinary interest by investors, which was also evident from the fact that the bid books exceeded 2.5 billion euros within the first hour and a half, which resulted in the total demand exceeding 4, 5 billion euros, i.e. the issue was oversubscribed more than 5.4 times, enabling Eurobank to raise 850 million euros and reduce the credit margin of the bond to 180 bp. from 210 sq.m. which was the original indicative offer. The issue attracted strong demand from international investors with significant geographical dispersion, as it gathered orders from approximately 270 investors, which constitutes the highest bid book as well as the largest number of investors who have expressed interest in a Greek-issued senior bond. The final allocation to ESG oriented investors exceeded 60%.

In the breakdown, international investors account for around 85% of the issue with significant participation from the UK and Ireland (34%), France (14%) and Italy (12%). As for investors, 62% was allocated to Asset Managers, 22% to Private Banks, 9% to Hedge Funds and 5% to Insurance and Pension Funds.

The funds raised through the issue will contribute to the coverage of the Eurobank Group’s obligations regarding the Minimum Required Eligible Liabilities (MREL) and will contribute to the increase of the Equity and Eligible Liabilities towards the full meeting the level of the final Minimum Requirement.

The coordinators of the issue were BNP Paribas, BofA Securities, Commerzbank Aktiengesellschaft, Goldman Sachs Bank Europe SE, HSBC Continental Europe and Nomura Financial Products Europe GmbH.