Eurobank announced it successfully completed the pricing of a senior preferred bond worth 500 million euros. The bond matures on July 7, 2028, with a call option one year earlier. It offers an annual coupon of 2.875% and will be listed for trading on the Luxembourg Stock Exchange. Notably, demand was impressive, reaching nearly 4.5 billion euros, representing almost nine times the offered amount. This allowed Eurobank to reduce the bond’s credit spread to 90 basis points from the initial 125.
Read: Banks: “Injecting” money into the real economy – New loans worth 10.4 billion euros by end of 2025
The process attracted strong interest from 162 different international investors, with 94% of participation coming from abroad. The largest portions came from France (29%), followed by the United Kingdom and Ireland (17%), Italy (12%), and Germany together with Austria (11%).
Eurobank’s detailed announcement
Eurobank Ergasias Services and Holdings S.A. (Eurobank Holdings) announces that its subsidiary Eurobank S.A. (the “Bank” or “Eurobank”) successfully completed the pricing of a senior preferred bond worth 500 million euros.
The bond has a maturity date of July 7, 2028, with a call option on July 7, 2027 (3NC2), and an annual coupon of 2.875%. The settlement date is July 7, 2025, and the bonds will be traded on the Luxembourg Stock Exchange (on the Euro MTF market).
The transaction was received with exceptional interest from investors, resulting in total demand reaching nearly 4.5 billion euros, with approximately 9 times oversubscription. This enabled Eurobank to raise 500 million euros and reduce the bond’s credit spread to 90 basis points from 125 basis points in the initial indicative offer. The bookbuilding process attracted strong demand from foreign investors with significant geographical diversification, as the Bank collected orders from 162 different investors.
Foreign investor participation represents 94%, mainly from France (29%), the United Kingdom and Ireland (17%), Italy (12%), and Germany and Austria (11%). 68% was allocated to Asset Managers, 20% to Banks and Private Banks, 8% to Insurance and Pension Funds, and 2% to Alternative Investment Organizations (Hedge Funds).
The funds raised through the issuance will contribute to the long-term coverage of the Eurobank Group’s obligations regarding Minimum Requirements in Eligible Liabilities and Own Funds (MREL) and will be allocated for Eurobank’s business purposes. The underwriters of the issuance were Deutsche Bank, IMI – Intesa Sanpaolo, Jefferies, Santander, and Société Générale.