Eurobank marked its first market outing in 2025 with the launch of a €400 million bond issue, aiming to strengthen its financial position and reinforce investor confidence.
Details Of The Bond Issue
The bond is a Tier 2 instrument with a 10-year maturity and an option for early redemption after 5 years. The bid book opened this morning, with initial pricing considerations (IPT) positioning the yield in the mid-swap range of +220 to +250 basis points—equating to a yield of approximately 4.67% to 4.72%.
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The bond is set to receive credit ratings of Ba2 from Moody’s and BB- from Fitch, reflecting the bank’s solid standing in the financial sector despite the challenging economic environment.
Strategic Exchange Offer
In conjunction with the bond issuance, Eurobank has initiated a separate transaction, offering to exchange €200 million of Hellenic Bank’s Tier 2 bonds for Tier 2 securities of its own issuance. This move is expected to consolidate its capital structure and streamline its liabilities.
Market Outlook And Implications
The issuance demonstrates Eurobank’s proactive approach to tapping the capital markets and optimizing its funding profile. By issuing Tier 2 bonds, the bank aims to bolster its regulatory capital, aligning with European banking standards and ensuring long-term resilience.
The exchange offer with Hellenic Bank underscores the importance of collaboration within the sector, allowing for greater stability and adaptability in a rapidly evolving financial landscape.
As the Eurobank continues its strategic initiatives, this bond issuance signals robust investor interest and confidence in the bank’s growth trajectory for 2025 and beyond.
