Shearman And Sterling

News December 07, 2015

Shearman & Sterling Advises Eurobank on its €2.04 Billion Recapitalization

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 Shearman & Sterling team advising Eurobank on its institutional offering was led by capital markets associates, Jonathan Handyside, Joseph Hutchinson, Elena Dzhurova and Georgina Leonidou and law clerk Oscar Lopez.

The Shearman & Sterling team advising Eurobank on its voluntary liability management exercise was led by finance partner James Duncan.

Partner Barney Reynolds, counsel Azad Ali and associates Inyoung Song and Aysuria Chang advised on financial institution regulatory matters, and associate Marixenia Davilla advised on European competition matters.  Partner Kristen Garry and associate Michael Daly advised on US tax matters, and counsel Simon Letherman and associate Lois Howarth advised on UK tax matters.