Eurobank announced 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 from the issuance will be channelled towards the financing or refinancing of a portfolio of eligible green investments based on the use of proceeds criteria and selection process as outlined in the Eurobank Green Bond Framework, which is in line with the ICMA Green Bond Principles (GBP) 2021.
The bond matures on September 24, 2030, is payable at par on September 24, 2029 (6NC5), and has an annual coupon of 4%. The settlement date is September 24, 2024 and the bonds will be listed on the Luxembourg Stock Exchange (Euro MTF market).
The operation, as highlighted, was met with extraordinary interest by investors, which was also evident from the fact that the bid books exceeded €2.5 billion in the first hour and a half, resulting in a total demand of over €4.5 billion, i.e. the issue was oversubscribed by more than 5.4 times, allowing Eurobank to raise €850 million and reduce the bond’s credit spread to 180 mp from 210 m², which was the original indicative offer.
Strong demand from international investors
The issuance attracted strong demand from international investors with significant geographical dispersion, as it received orders from approximately 270 investors, which constitutes the largest bid portfolio and the largest number of investors expressing interest in a senior bond issued by Greece. The final allocation to ESG-oriented investors exceeded 60%.
In terms of distribution, international investors accounted for around 85% of the issue, with significant participation from the United Kingdom and Ireland (34%), France (14%) and Italy (12%). As for investors, 62% went to Asset Managers, 22% to Private Banks, 9% to Hedge Funds and 5% to Insurance and Pension Funds.
The funds raised through the issuance will contribute to covering the Eurobank Group’s obligations in relation to the Minimum Required Eligible Liabilities (MREL) and will contribute to increasing Equity and Eligible Liabilities towards full compliance with the final Minimum Requirement level.
The underwriters for the issue were BNP Paribas, BofA Securities, Commerzbank Aktiengesellschaft, Goldman Sachs Bank Europe SE, HSBC Continental Europe and Nomura Financial Products Europe GmbH.
