The bid book for Eurobank's six-year callable green bond with a five-year call option closed yesterday, with the offer exceeding €4bn.The bond will be priced at MS+180 basis points. The issue size was set at €850m and the coupon will be fixed until 24 September. THE ISSUE A minimum amount for participation was set at €100k and multiples of €1,000 above this amount. The underwriters of the issue are HSBC, BNP Paribas, BofA, Commerzbank, Goldman Sachs, HSBC and Nomura. Moody's is likely to assign the issue a Baa2 rating.

THE PROCEEDS

The net proceeds of the issue of the notes will be used to finance or refinance a portfolio of Green Eligible Projects selected in accordance with the criteria for use of proceeds and selection process as described in the issuer's Green Bond.

THE REINVALUATION FROM MOODY'S

But it is not just a vote of confidence by investors in the bank's management. Moody's recently upgraded the bank's outlook, while Eurobank figures among the firms' standout stocks. Moody's analysts say they took into account the bank's strong financial performance in recent years, its geographically diversified asset base and earnings. According to the analysts, it achieved a tangible book value return of 18.5% in the first half and a cost-to-core income ratio of 32.3%.

THE CREDIT PROFILE

The bank's strong credit profile is also highlighted through its pro-forma Tier 1 common equity Tier 1 (CET1) ratio of 16.2% as of June 2024 (incorporating the dividend distribution and the consolidation of Hellenic Bank), while the overall capital adequacy ratio stood at 19.3%. According to the rating agency, Eurobank's acquisition of a majority stake (roughly 56%) in Hellenic Bank strengthens its credit profile and increases its geographic diversification. The bank's strong credit profile is also highlighted through its pro-forma common equity Tier 1 (CET1) ratio of 16.2% as of June 2024 (incorporating the dividend distribution and the consolidation of Hellenic Bank), while the overall capital adequacy ratio stood at 19.3%. According to the rating agency, Eurobank's acquisition of a majority stake (roughly 56%) in Hellenic Bank strengthens its credit profile and increases its geographic diversification.