Eurobank attracts strong international demand for €400m bond

Eurobank on Friday announced that it had successfully priced a €400 million issuance of fixed rate reset subordinated tier 2 notes, marking a major funding transaction for the group.

Specifically, Eurobank S.A. said the deal involved the issuance of subordinated Tier 2 debt instruments referred to as notes, with strong demand from international investors.

The bank confirmed that the notes will mature on April 29, 2037, providing long-dated capital to support its regulatory and funding objectives.

Eurobank said the instruments are callable at par from January 29, 2032 to April 29, 2032, under the structure described as 11.25NC6.25.

The notes offer a fixed coupon of 4.125 per cent per annum, giving investors predictable income until the first reset date.

The bank said settlement will take place on January 29, 2026, completing the issuance shortly after pricing.

Eurobank added that the notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market, enhancing their visibility and tradability for institutional investors.

According to the announcement, the transaction attracted exceptional investor interest from the outset, resulting in a final order book of €3.8 billion.

This translated into an oversubscription of 9.5 times, allowing Eurobank to tighten pricing significantly.

As a result of the strong demand, the final credit spread was set at 160 basis points, compared with the initial guidance of 200 basis points.

The book-building process drew firm final orders from 117 different investors, highlighting broad participation across regions and institutions.

Eurobank said foreign investors accounted for 94 per cent of the book at re-offer, underlining the international appeal of the transaction.

Participation was strongest from the United Kingdom and Ireland, which together represented 50 per cent, followed by France at 22 per cent.

Investors from Germany, Austria and Switzerland accounted for 8 per cent, reflecting solid interest from the DACH region.

In terms of investor type, asset managers represented 75 per cent of allocations, forming the core of the demand.

Banks and private banks accounted for 16 per cent of the investor base, according to the bank.

What is more, insurance companies and pension funds made up 3 per cent of total allocations.

The bank stated that the proceeds will support Eurobank Group’s compliance with Minimum Requirements for Eligible Liabilities and Own Funds, strengthening its regulatory position.

It added that the funds will also be used for general funding purposes, supporting the group’s broader balance sheet strategy.

Finally, Eurobank said Bank of America, Citibank, JP Morgan, Santander and UBS acted as Joint Bookrunners for the transaction.