eurobank bond — eurobank bond — Eurobank has successfully priced a €400 million issuance of fixed rate reset subordinated tier 2 notes, highlighting its robust funding capabilities. This significant transaction attracted overwhelming interest from international investors, culminating in a final order book of €3.8 billion, which is 9.5 times oversubscribed.
According to Eurobank S.A., the notes are set to mature on April 29, 2037, providing long-dated capital that will bolster its regulatory and funding objectives. The structure, known as 11.25NC6.25, allows the instruments to be callable at par from January 29, 2032, to April 29, 2032.
Offering a fixed coupon of 4.125 per cent per annum, these notes promise predictable income for investors until the first reset date. Settlement is scheduled for January 29, 2026, finalising the issuance shortly after pricing.
The notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market, enhancing their visibility and tradability among institutional investors. The exceptional investor interest from the outset reflects Eurobank’s strong positioning in the market.
Foreign investors demonstrated significant enthusiasm, making up 94 per cent of the final book at re-offer. Participation was particularly strong from the United Kingdom and Ireland, accounting for 50 per cent of allocations, while France followed with 22 per cent. Interest from the DACH region, encompassing Germany, Austria, and Switzerland, represented 8 per cent.
In terms of investor demographics, asset managers comprised 75 per cent of allocations, while banks and private banks accounted for 16 per cent. Insurance companies and pension funds made up the remaining 3 per cent of total allocations.
The proceeds from this issuance will support Eurobank Group’s compliance with the Minimum Requirements for Eligible Liabilities and Own Funds, thereby strengthening its regulatory framework. Additionally, the funds will contribute to the broader balance sheet strategy of the group.
Prominent financial institutions, including Bank of America, Citibank, JP Morgan, Santander, and UBS, acted as Joint Bookrunners for this noteworthy transaction, underscoring the collaborative effort behind Eurobank’s successful bond issuance.
