Nicosia: 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.
According to Cyprus News Agency, Eurobank Holdings has priced £400 million Fixed Rate Reset Subordinated Tier 2 Notes, highlighting strong investor confidence in its credit profile. 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 April 30, 2035, and are callable at par between January 30 and April 30, 2030. They offer an annual coupon of 4.25% and will settle on January 30, 2025. The Notes will be listed on the Euro MTF market of the Luxembourg Stock Exchange.
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 January 21 to January 27, 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 January 21, 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 January 28, 2025.
The purpose of the new issuance and exchange offer is to optimize the regulatory efficiency of Eurobank Holdings’ capital base. The proceeds will be used for general corporate purposes.