Eurobank: Green Bond Oversubscribed by 5.4 Times

Eurobank has successfully priced its 850 million euros Green Senior Preferred Bond, with demand significantly exceeding expectations as the issue was oversubscribed by more than 5.4 times.

According to the bank’s announcement, the bond is expected to receive an investment-grade rating of “Baa2” from Moody’s, following the recent upgrade of the bank to investment grade by the same agency.

“This first green issuance for the bank demonstrates its firm commitment to sustainability and its goal of achieving net-zero carbon emissions by 2050,” the statement said.

The proceeds from the issuance will be directed toward the financing or refinancing of a portfolio of eligible green investments, in line with the criteria for use of proceeds and the selection process outlined in Eurobank’s Green Bond Framework, which adheres to the 2021 ICMA Green Bond Principles (GBP).

The bond has a maturity date of September 24, 2030, with an option for early redemption at face value on September 24, 2029 (6NC5), and carries an annual coupon rate of 4%. Settlement is set for September 24, 2024, and the bonds will be listed on the Luxembourg Stock Exchange (Euro MTF market).

Strong Demand for Eurobank’s Green Bond

The transaction was met with exceptional interest from investors, as evidenced by the fact that order books surpassed 2.5 billion euros within the first hour and a half. This led to total demand exceeding 4.5 billion euros. This allowed Eurobank to raise 850 million euros and reduce the bond’s credit spread to 180 basis points, down from the initial indicative offer of 210 basis points.

The issuance attracted strong demand from international investors, with broad geographical distribution. It garnered orders from approximately 270 investors, marking the largest order book and highest number of investors ever recorded for a Greek senior preferred bond. More than 60% of the final allocation went to investors with an ESG focus.