Eurobank raises €600 million through seven-year green bond
Eurobank’s green senior preferred bond was 2.8 times oversubscribed, allowing the bank to tighten its pricing spread.
Nicosia, Cyprus. Eurobank raised €600 million through a seven-year green senior preferred bond on Tuesday, with the issue 2.8 times oversubscribed.
The bond, callable after six years, was priced at a spread of 98 basis points over the mid-swap rate.
Pricing and ratings
Initial guidance placed the pricing at around 125 basis points above the mid-swap rate, implying a yield of approximately 4.54 per cent.
Strong demand enabled the bank to tighten the spread before completing the €600 million issue.
The bond is expected to receive ratings of Baa1 from Moody’s, BBB- from S&P, BBB from Fitch and BBBH from Morningstar DBRS.
Capital and green finance strategy
The transaction forms part of Eurobank’s strategy to meet and strengthen its Minimum Requirement for own funds and Eligible Liabilities position by raising eligible capital through international markets.
Barclays, Commerzbank, HSBC, Natixis and Société Générale are acting as joint bookrunners.
The issue follows Eurobank’s previous activity in the green senior preferred debt market. The bank raised €850 million through its first comparable green senior preferred issue in 2024.
The latest bond also follows Eurobank’s recent update of its Green Bond Framework, which sets the criteria for raising capital-market funds to finance environmentally sustainable investments.
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