Eurobank has raised €600 million through a seven-year green senior preferred bond, with the final order book reaching about €1.4 billion as international investors showed strong demand for the issue, the bank confirmed on Wednesday.

As first reported yesterday, the level of demand allowed Eurobank to price the transaction at a credit spread of 98 basis points, significantly below the initial indication of 125 basis points.

The new fixed-rate green senior preferred notes carry a 4.125 per cent annual coupon and mature on September 8, 2033.

The notes can be called at par by Eurobank on September 8, 2032, while settlement is scheduled for September 8, 2026.

The securities will be listed on the Luxembourg Stock Exchange’s Euro MTF market.

The final demand represented an oversubscription of about 2.5 times, according to Eurobank, with more than 65 investor accounts participating in the book-building process.

The bank said the demand was also geographically diverse, with foreign investors accounting for approximately 90 per cent of the order book.

Investors from Belgium, the Netherlands and Luxembourg collectively accounted for 27 per cent of the book, followed by the United Kingdom at 23 per cent and France at 20 per cent.

Germany, Austria and Switzerland collectively represented a further 11 per cent of demand.

Asset managers made up the largest investor group, accounting for 54 per cent of the allocation.

Insurance and pension funds represented 21 per cent, banks and private banks 17 per cent, while hedge funds accounted for the remaining 8 per cent.

The proceeds will be used to finance or refinance eligible green assets selected under the criteria and selection process set out in Eurobank’s Green Bond Framework 2026.

The framework is aligned with the International Capital Market Association’s Green Bond Principles 2025, providing the basis for identifying investments that can be financed through the bond.

The transaction also forms part of Eurobank Group’s strategy to maintain continuous compliance with the Minimum Requirements for Own Funds and Eligible Liabilities (MREL).

The latest issue follows Eurobank’s first comparable green senior preferred bond in 2024, when the bank raised €850 million.

Eurobank updated its Green Bond Framework for the latest transaction, marking the second update since the framework was originally introduced in 2021.

The revised framework incorporates experience gained from the 2024 €850 million green bond and sets out the criteria for eligible projects, the process for selecting them and how the use of proceeds will be monitored.

Eligible investments are covered by five areas, namely energy efficiency, renewable energy, clean transport, green buildings, and sustainable water and wastewater management.

The framework also excludes a range of activities, including weapons, tobacco, alcohol, gambling and radioactive materials, alongside certain activities associated with the exploitation of natural resources.

Eurobank has committed to publishing an annual report on the allocation of the bond proceeds, while the process is subject to external assessment and independent verification.

The latest transaction comes as Eurobank continues to use international debt markets to support its regulatory capital requirements while increasing the share of funding linked to environmentally focused investments.

Barclays Bank Ireland, Commerzbank Aktiengesellschaft, HSBC Continental Europe, Natixis and Société Générale acted as joint bookrunners for the issue.

The latest pricing provides Eurobank with €600 million of new funding at a substantially tighter spread than initially indicated, reflecting the strength of investor demand for the transaction.