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Eurobank Returns To The Markets with €400 Million Bond Issue

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%.

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.

EU Farm Output Prices Decline For The First Time In Nine Months

EU Market Adjustments Signal New Price Trends

Agricultural output prices across the European Union declined in the fourth quarter of 2025, marking a shift after several quarters of increases. Data from Eurostat shows that farm gate prices fell by 1.9% compared with the same period in 2024.

Crisis of Declining Prices In Select Markets

Cyprus recorded one of the more notable decreases in agricultural input costs among EU member states, with prices falling by 2.6% compared with Q4 2024. The reduction eased cost pressures for the local agricultural sector following periods of higher prices earlier in 2025. Across the EU, prices for goods and services consumed in agriculture remained relatively stable. Non-investment inputs such as energy, fertilisers and feedingstuffs showed limited overall changes during the quarter.

Country-Specific Divergence In Price Movements

Eurostat data highlights considerable variation across member states. Fifteen EU countries recorded declines in agricultural output prices. Belgium registered the largest decrease at 12.9%, followed by Lithuania (8.2%) and Germany (6.0%). At the same time, twelve countries reported increases in output prices. Ireland recorded the strongest rise at 6.8%, followed by Slovenia (5.6%) and Malta (4.2%).

Stability In Agricultural Inputs Amid Commodity Shifts

Agricultural input prices also showed mixed developments. Eleven member states recorded declines, including Cyprus (2.6%), Belgium (2.1%) and Sweden (2.0%). Other countries experienced moderate increases, including Lithuania (4.2%), Ireland (3.3%) and Romania (2.5%). Among major agricultural commodities, milk prices declined by 4.1% while cereal prices fell by 8.9% across the EU. In contrast, fertilisers and soil improvers increased by 7.9%, reflecting continued volatility in input markets.

Outlook For EU Agriculture

The latest Eurostat data points to uneven price developments across the EU agricultural sector. While input prices remained broadly stable in many markets, movements in output prices varied significantly between member states. These trends highlight the need for farmers and policymakers to adapt to shifting commodity prices and changing cost structures across the European agricultural market.

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