Eurobank announces €400m bond issuance and €200m Hellenic Bank bond exchange

Eurobank Holdings has announced the successful pricing of €400 million Fixed Rate Reset Subordinated Tier 2 Notes and the launch of an exchange offer for Hellenic Bank Public Company Limited’s €200 million outstanding 10.250% Tier 2 Notes.

The issuance attracted robust demand of €2 billion, representing a fivefold oversubscription. This allowed Eurobank Holdings to secure €400 million at a reduced credit spread of 200 basis points, compared to the initial guidance of 225 basis points.

The Notes will mature on 30 April 30 2035, and are callable at par between 30 January and 30 April 2030. They offer an annual coupon of 4.25% and will settle on 30 January 2025. The Notes will be listed on the Euro MTF market of the Luxembourg Stock Exchange.

Exchange offer for Hellenic Bank Tier 2 notes

Eurobank has also launched an any-and-all exchange offer for Hellenic Bank’s €200 million 10.250% Tier 2 Notes with a call date of March 14, 2028. The exchange offer runs from 21 to 27 January 2025, at 17:00 CET.

Holders of Hellenic Bank’s Tier 2 Notes can exchange them for additional Eurobank Holdings Subordinated Notes, which will have the same terms as the €400 million issuance. These details are outlined in the Exchange Offer Memorandum, published on 21 January 2025.

The final issuance size of the Eurobank Holdings Subordinated Notes is expected to exceed €400 million, subject to the acceptance of exchanged Hellenic Bank Notes. The results of the exchange offer will be announced on 28 January 2025.

The purpose of the new issuance and exchange offer is to optimise the regulatory efficiency of Eurobank Holdings’ capital base, it said in a press release. The proceeds will be used for general corporate purposes, it added.