Chicago, Jan. 9 – Erste Group Bank AG priced €750 million of 4% green senior preferred notes with an eight-year tenor (A2/A+/A) on Monday, based on information from a market source.
The bank priced the notes at 99.313 to yield 4.115%, or at mid-swaps plus 125 basis points.
Initial price talk was in the mid-swaps plus 150 bps area.
The notes may be redeemed on Jan. 16, 2030, one year before the maturity date. If the notes are not redeemed early, the rate will reset to mid-swaps plus the original issue spread.
Danske Bank, DZ Bank, Erste Group (billing and delivery), ING, Landesbank Baden-Wurttemberg and Natixis are bookrunners.
Final books were above €1.5 billion, about twice deal size.
Proceeds will be allocated to finance eligible green and eligible social projects.
The issuer is an Austrian financial service provider in Central and Eastern Europe.
| Issuer: | Erste Group Bank AG
|
| Amount: | €750 million
|
| Issue: | Green senior preferred notes
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| Maturity: | Jan. 16, 2031
|
| Bookrunners: | Danske Bank, DZ Bank, Erste Group (billing and delivery), ING, Landesbank Baden-Wurttemberg and Natixis
|
| Coupon: | 4% initial rate; resets to mid-swaps plus original issue spread on Jan. 16, 2030
|
| Price: | 99.313
|
| Yield: | 4.115%
|
| Spread: | Mid-swaps plus 125 bps
|
| Call features: | Jan. 16, 2030
|
| Trade date: | Jan. 9
|
| Settlement date: | Jan. 16
|
| Ratings: | Moody’s: A2
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| S&P: A+
|
| Fitch: A
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 150 bps area
|
| ISIN: | AT0000A32562
|
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