Eurobank Successfully Issues €500 Million Senior Preferred Bond

Eurobank Holdings has announced that its subsidiary successfully priced a €500 million senior preferred bond. The bond matures on July 7, 2028, with a call option on July 7, 2027 (3NC2), and carries an annual coupon of 2.875%. Settlement is scheduled for July 7, 2025, and the bonds will be listed on the Luxembourg Stock Exchange (Euro MTF market). Investor demand was exceptionally strong, reaching nearly €4.5 billion, which represents around nine times coverage, allowing Eurobank to raise the full €500 million and reduce the credit spread of the bond to 90 basis points from the initial indicative level of 125 basis points. The book-building process attracted robust interest from international investors, with participation from 162 different investors globally. Foreign investors accounted for 94% of the allocation, primarily from France (29%), the UK and Ireland (17%), Italy (12%), and Germany and Austria (11%). Allocation breakdown includes 68% to Asset Managers, 20% to Banks and Private Banks, 8% to Insurance and Pension Funds, and 2% to Hedge Funds. The proceeds will support Eurobank’s long-term obligations under the Minimum Requirements for Eligible Liabilities and Own Funds (MREL) framework and will be used for general corporate purposes. The coordinators of the issuance were Deutsche Bank, IMI – Intesa Sanpaolo, Jefferies, Santander, and Société Générale.