Eurobank bond attracts €2.7bn orders from investors

Greek lender Eurobank S.A. on Tuesday announced the successful pricing of a €700 million senior preferred bond issue, marking a strong return to debt markets supported by robust investor demand.

The bank confirmed that it completed the issuance of fixed rate senior preferred notes due May 25, 2032, with settlement scheduled for May 25, 2026.

The notes carry a coupon of 3.875 per cent per annum and include a call option at par on May 25, 2031.

They will also be listed on the Luxembourg Stock Exchange’s Euro MTF market, providing access to international investors.

Investor interest in the transaction proved particularly strong, with total demand reaching approximately €2.7 billion.

This represents an oversubscription of around 3.9 times, allowing the bank to secure funding on more favourable terms.

As a result, Eurobank achieved a reduced credit spread of 97 basis points, compared with the initial guidance level of 125 basis points.

The bookbuilding process attracted broad participation, with more than 90 investor accounts taking part in the offering.

Demand was also geographically diverse, reflecting strong international confidence in the bank’s credit profile.

Following allocation, foreign investors accounted for approximately 91 per cent of the total order book.

The largest share came from investors in the United Kingdom and Ireland, who made up 32 per cent of demand.

This was followed by Germany, Austria and Switzerland combined at 21 per cent, Belgium, the Netherlands and Luxembourg at 13 per cent, and France at 12 per cent.

In terms of investor types, asset managers dominated participation, accounting for 58 per cent of allocations.

Banks and private banks represented 18 per cent, while insurance and pension funds contributed 13 per cent and hedge funds accounted for 9 per cent.

The bank said that proceeds from the issuance will support its strategy to meet Minimum Requirements for Own Funds and Eligible Liabilities (MREL).

In addition, the funds will be used for general business purposes across the group.

The transaction was arranged by a syndicate of major international financial institutions acting as joint bookrunners.

This included BNP Paribas, Deutsche Bank, Goldman Sachs, IMI Intesa Sanpaolo, Jefferies and Nomura.