Eurobank is set to issue a 500-million-euro bond on Wednesday, so as to make the most of the positive climate brought about by the upgrading of Greece’s credit rating by Standard & Poor’s, combined with Piraeus Bank’s successful share capital increase.
The bond will be a senior preferred one, with a six-year maturity period that the bank may revoke after five years; its aim will be to expand the bank’s liquidity sources through additional funding tools. HSBC, Goldman Sachs, UBS, Bank of America and BNP will be the bookrunners.
The bond issue has been chosen ahead of the obligation for the lender’s expansion of its liquidity and capital base by the supervisory authorities in the context of the Minimum Required Eligible Liabilities (MREL) exercise.
The funding program “Euro Medium-Term Notes,” which the bank’s management has announced in the context of the MREL commitments, provides for issues of €1 billion within 2021, half of which must be in the first half of the year, and another €1 billion in 2022. Eurobank also enjoyed a €2.4 billion increase in deposits in 2020.