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The issue has a five year maturity, with a ten years extension option, and was priced at 250bps above the ECB benchmark rate. EFG intends to issue additional covered bonds within the year, having received approval by the BoD for up to €5bn. Moody’s said that has assigned an ‘Aa2’ rating to the issue. The rating is though placed on review for possible downgrade, in accordance with the review on the bank’s rating. Moody’s says that the covered bond rating will be downgraded if Eurobank’s rating falls below ‘A3’ vs the current ‘A2’. Overall, despite the hefty cost, we consider the development positive, being the first issue by a major Greek bank in the last three months. We would expect more banks to proceed with similar issues.