Shearman & Sterling advised Eurobank Ergasias S.A. (“Eurobank”) on its recapitalization to cover the €2.04 billion capital shortfall identified by the comprehensive assessment conducted by the European Central Bank in the context of the third economic adjustment program agreed between Greece and the European Commission.

The €2.04 billion recapitalization comprised a private placement of new ordinary shares to qualified investors, eligible institutional investors and other eligible investors, as well as a voluntary liability management exercise in which Eurobank issued new ordinary shares in exchange for certain outstanding debt securities. Eurobank successfully raised the full amount of its capital shortfall through private means, thereby avoiding the application of mandatory burden-sharing measures or state aid.

Eurobank is one of the four systemic banks in Greece, and also has operations in Romania, Bulgaria, Serbia and Cyprus, along with a subsidiary with one branch in Luxembourg and a branch in the United Kingdom.

The Team