Athens, Greece. Eurobank announced it had successfully priced a €400 million issuance of fixed rate reset subordinated Tier 2 notes, describing it as a major funding transaction for the group.
The bank said the deal drew strong demand from international investors and resulted in a final order book of €3.8 billion.
Terms of the issuance
Eurobank said the notes will mature on April 29, 2037. The instruments are callable at par from January 29, 2032 to April 29, 2032, under a structure described as 11.25NC6.25.
The notes offer a fixed coupon of 4.125 per cent per annum until the first reset date. Settlement is expected to take place on January 29, 2026.
Listing and investor demand
Eurobank said the notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market.
The bank said investor interest from the outset led to an oversubscription of 9.5 times, enabling it to tighten pricing. The final credit spread was set at 160 basis points, compared with initial guidance of 200 basis points.
What do you think the strong demand for Eurobank’s Tier 2 notes signals to investors?