October 1, 2009 EFG Eurobank Ergasias S.A. announces to the public today that it was notified of the following:
"1 October 2009
EFG Bank European Financial Group Announces the Launch of €250 million Exchangeable Securities due 2014
EFG Bank European Financial Group SA (the "EFG Bank Group") announces today the launch by EFG Ora Funding Limited III (the "Issuer") of €250 million senior unsecured bonds due 2014 (the "Bonds") guaranteed by EFG Eurobank Ergasias S.A. ("Eurobank EFG"). The Bonds will have attached, non-detachable exchangeable instruments issued by EFG Bank Group (together with the Bonds, the "Exchangeable Securities"). The Exchangeable Securities will be exchangeable into Eurobank EFG ordinary shares, the number of which will be determined at the time of pricing (the "Exchange Property").
The five-year Exchangeable Securities are expected to carry a coupon of between 1.70% to 1.95% per annum payable annually in arrear. The exchange price is expected to be set at a premium of 35% to the volume-weighted average price of Eurobank EFG ordinary shares on the Athens Stock Exchange from launch to pricing. The Exchangeable Securities will be issued and redeemed at par on maturity. The Issuer has the right to redeem all outstanding Exchangeable Securities at their par value after the third anniversary of closing if the value of the Exchange Property trades at 130% or more of the par value of the Bonds for a specified period of time. The Exchangeable Securities are expected to price today and closing is expected on or about 29 October 2009.
The net proceeds will be lent by the Issuer to companies controlled by European Financial Group EFG (Luxembourg) Sàrl.
Applications will be made for the Exchangeable Securities to be listed on the Official List of the Luxembourg Stock Exchange and for admission of the Exchangeable Securities to trading on the Luxembourg Stock Exchange’s EuroMTF Market.
Barclays Capital and UBS Investment Bank are acting as the Joint Bookrunners and Joint Lead Managers for the offering. EFG Eurobank Ergasias S.A. is acting as Senior Co-Lead Manager. Rothschild is acting as financial adviser to EFG Bank Group.-"
