Eurobank Raises €600 Million Through Green Bond as Investor Demand Surges

Strong Demand Pushes Pricing Sharply Lower

Eurobank completed the sale of a €600 million green senior preferred bond this week, with investor demand pushing the order book to about 2.8 times the amount on offer. The seven-year notes carry a fixed annual coupon of 4.125 per cent and were ultimately priced at a spread of 98 basis points over the mid-swap rate — well inside the roughly 125 basis point initial guidance, which had implied a yield near 4.54 per cent.

International Buyers Dominate the Order Book

More than 65 investors took part in the sale, with total orders reaching close to €1.4 billion. Foreign buyers accounted for around 90 per cent of the allocation, led by investors from Belgium, the Netherlands and Luxembourg at 27 per cent, the United Kingdom at 23 per cent, France at 20 per cent, and the German-speaking bloc of Germany, Austria and Switzerland at 11 per cent. By investor type, asset managers took the largest share at 54 per cent, followed by insurance and pension funds at 21 per cent, banks and private banks at 17 per cent, and alternative investment funds at 8 per cent.

Terms, Ratings and Lead Managers

The notes mature on September 8, 2033, with a call option available a year earlier, on September 8, 2032, at par. Settlement is scheduled for September 8, 2026, and the bond will list on the Euro MTF market of the Luxembourg Stock Exchange. The issue is expected to carry ratings of Baa1 from Moody's, BBB- from S&P, BBB from Fitch and BBBH from Morningstar DBRS. Barclays, Commerzbank, HSBC, Natixis and Société Générale acted as lead managers on the transaction.

Part of a Wider Green Funding Push

The offering forms part of Eurobank's ongoing effort to build up its buffer of Minimum Requirement for own funds and Eligible Liabilities (MREL), and follows an €850 million green senior preferred bond the lender sold in 2024. Proceeds will finance environmentally sustainable projects across five categories — energy efficiency, renewable energy, clean transport, green buildings, and sustainable water and wastewater management — under an updated version of the bank's Green Bond Framework, itself revised for the second time since its introduction in 2021. Eurobank has committed to publishing annual allocation reports subject to external assessment and independent verification.