Eurobank shareholders clear convertible bond issue

ATHENS, July 1 (Reuters) - EFG Eurobank (EFGr.AT) has got shareholder approval for a convertible bond issue of up to 500 million euros ($703 million) to boost its capital ratios, it said on Wednesday.

Shareholders approved the issue of a callable bond convertible into ordinary shares, either in a lump sum or gradually in tranches.

EFG will have the right to redeem the bond after the fifth year of each issue, subject to approval by the Bank of Greece.

The coupon rate of each issue will not exceed 10 percent. Conversion rights can be exercised by bond holders after the fifth year.

"The bond will be placed with at least one special purpose foreign subsidiary of the bank, which will issue hybrid callable securities, exchangeable with the bank's shares," EFG said.

The conversion price will be set at a discount of up to 15 percent. (Reporting by George Georgiopoulos; Editing by Dan Lalor)