Opened the bid book for Eurobank’s new senior preferred bond to raise at least € 350 million, with the initial guidance set at 4.5%. According to the bank, there have already been signs of interest in more than 450m euros in offers, including its subsidiaries.
The stock is of the type 2.75NC1.75, ie lasting 2.75 years with the right of revocation at 1.75 years, its trading will be on the Luxembourg Stock Exchange, while its rating by the companies is estimated at B1 by Moody’s and B + from Fitch and S&P.
The pricing of the title is expected today, while the settlement date is June 9th. The title expires on March 9, 2025 and the reset date is March 9, 2024. Deutsche Bank, Morgan Stanley and Nomura have taken on the role of joint bookrunners.
As stated by the management, although Eurobank has met its Interim Target on Minimum Required Eligible Liabilities (MREL) capital target, it has been monitoring market developments for the possible issuance of senior bonds.
Recently, there has been a slight decrease in bond yields and market pressures, leading the bank to take this decision in view of the increase in ECB interest rates over the summer, which is expected to put new pressure on the bond market.
It is worth noting that the 6-year senior preferred bond of Eurobank maturing 2027 has a yield of 5.76% from 2.125% which was the yield at its issue in April 2021, while in the senior preferred maturing 2028 its yield today stands at 5.56 % when at the time of its issuance last September it had been placed at 2.375%.
Eleftheria Kourtali
Source: Capital
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