**Eurobank Successfully Raises €600 Million Through Green Bond Offering**
Eurobank has successfully raised €600 million through a seven-year green senior preferred bond, attracting significant interest from international investors. The bank announced on Wednesday that the final order book reached approximately €1.4 billion, demonstrating strong demand for the issuance.
The bond was priced at a credit spread of 98 basis points, which is notably lower than the initial indication of 125 basis points. This pricing reflects the robust interest from investors, allowing Eurobank to secure favorable terms for the transaction. The new fixed-rate green senior preferred notes carry an annual coupon of 4.125% and are set to mature on September 8, 2033. Additionally, Eurobank has the option to call the notes at par on September 8, 2032, with settlement scheduled for September 8, 2026. The securities will be listed on the Luxembourg Stock Exchange’s Euro MTF market.
The demand for the bond was substantial, with the final figures indicating an oversubscription of approximately 2.5 times. Over 65 investor accounts participated in the book-building process, showcasing a diverse geographical interest. Notably, foreign investors accounted for around 90% of the order book.
Geographically, investors from Belgium, the Netherlands, and Luxembourg collectively made up 27% of the demand. The United Kingdom followed closely with 23%, while France represented 20%. Additionally, Germany, Austria, and Switzerland contributed 11% to the overall demand.
In terms of investor composition, asset managers emerged as the largest group, securing 54% of the allocation. Insurance and pension funds accounted for 21%, while banks and private banks represented 17%. Hedge funds made up the remaining 8% of the allocation.
The proceeds from this bond issuance will be utilized to finance or refinance eligible green assets, in accordance with the criteria outlined in Eurobank’s Green Bond Framework 2026. This framework aligns with the International Capital Market Association’s Green Bond Principles 2025, establishing a clear process for identifying investments that can be financed through the bond.
This latest issuance is part of Eurobank Group’s broader strategy to maintain compliance with the Minimum Requirements for Own Funds and Eligible Liabilities (MREL). The current bond offering follows Eurobank’s first comparable green senior preferred bond issued in 2024, which raised €850 million.
Eurobank has also updated its Green Bond Framework for this transaction, marking the second revision since its initial introduction in 2021. The updated framework incorporates lessons learned from the previous €850 million green bond and outlines the criteria for eligible projects, the selection process, and monitoring of the use of proceeds. Eligible investments fall into five categories: energy efficiency, renewable energy, clean transport, green buildings, and sustainable water and wastewater management. The framework explicitly excludes investments in sectors such as weapons, tobacco, alcohol, gambling, and certain activities related to natural resource exploitation.
To ensure transparency and accountability, Eurobank has committed to publishing an annual report detailing the allocation of the bond proceeds. This process will be subject to external assessment and independent verification, reinforcing the bank's commitment to responsible investment practices.
The successful completion of this bond transaction underscores Eurobank's ongoing efforts to tap into international debt markets to support its regulatory capital requirements while simultaneously increasing its funding linked to environmentally sustainable investments. The joint bookrunners for this issue included Barclays Bank Ireland, Commerzbank Aktiengesellschaft, HSBC Continental Europe, Natixis, and Société Générale.
Overall, the strong investor demand and favorable pricing achieved by Eurobank highlight the growing interest in green finance and the bank's commitment to sustainable investment practices as it continues to navigate the evolving financial landscape.