Eurobank to tap markets with bond

Eurobank to tap markets with bond

Eurobank is expected to raise 400 to 500 million euros on Thursday from the markets through the issue of a senior preferred bond to cover the target for the Minimum Requirements for Equity and Eligible Liabilities, known as MREL obligations.

The mandate was given on Wednesday to BNP Paribas, Goldman Sachs Europe, HSBC, IMI Intesa Sanpaolo and UBS and the bid book is expected to open Thursday. The bond will have a duration of six years with the possibility of revocation after five; the coupon is expected to be close to 7.25%.

Eurobank’s bond issue is the first by a Greek bank in 2023 and comes immediately after the successful market foray of the Greek state on Tuesday, in an attempt to capitalize on the good climate before the official entry of the country into a pre-election period.

The prospect of the elections may affect the plans of the Greek banks for market access, depending on the time of the polls, but also the period required until a government is formed; for this reason, Eurobank is in a hurry to make the most of the intermediate time, in order to avoid the concentration of all of its 2023 bond issues in the second half of the year.

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