FRANKFURT - Eurobank SA, a prominent banking institution, has initiated a pre-stabilization period as of today, with Deutsche Bank AG (NYSE:DB), Frankfurt acting as the Stabilization Coordinator. The announcement indicates that a team of Stabilization Managers may engage in activities to support the market price of the bank's latest securities offering, a EUR benchmark 5.25-year non-call 4.25-year senior preferred transaction, identified by the ISIN code XS2956845262.
The stabilization period commenced today and is expected to conclude by January 16, 2025. The Stabilization Managers, including Citi, Deutsche Bank (ETR:DBKGn), IMI-Intesa Sanpaolo, Jefferies, Santander (BME:SAN), and Société Générale (EPA:SOGN), have the option to over-allot securities or conduct transactions to maintain the securities' market price above levels that might naturally occur. Nevertheless, there is no certainty that stabilization will take place, and if initiated, it can be halted at any time, in compliance with all applicable laws and rules.
The initial price thoughts (IPTs) for the offering have been set in the area of 155 basis points over the mid-swap rate, with the precise aggregate nominal amount yet to be confirmed. The potential stabilization measures are part of a broader effort to ensure a successful issuance and subsequent market performance of the securities.
This move by Eurobank and its Stabilization Managers is a strategic effort to manage the securities' market entry, a common practice in the financial industry to mitigate price volatility following new offerings. The stabilization actions, if taken, are subject to strict regulations designed to prevent market manipulation.
It's important to note that this announcement serves as a notice and is not an offer to underwrite or acquire securities. The securities mentioned are not being offered for sale in the United States and have not been registered under the U.S. Securities Act of 1933. As such, they cannot be sold in the U.S. without registration or an applicable exemption from registration requirements.
The information in this article is based on a press release statement and is intended for those with professional investment experience or high net worth, as defined by relevant financial regulations. It does not constitute an invitation or offer for investment activities to the general public.
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