The project is carried out in partnership with investment bank Barclays Bank PLC, as arranger, PwC as agent, Allen & Overy Londra and RTPR Allen & Overy as advisors to the arranger and Clifford Chance Badea and Clifford Chance London, as advisors to the issuer. Alpha Bank Romania seeks to list the bods issued within the program on the Luxembourg Stock Exchange and the Bucharest Stock Exchange. Moody’s will assign ratings to the bonds issued within the program.
Mortgage bonds are a common financing solution in international financial markets, whereby the bank aims to diversify its funding sources and lower their average cost, attracting new funds for the development and expansion of its activities. At the European Union level, about 27% of mortgages from financial institutions are funded by covered bonds, a frequently used solution by all banking systems in Europe. Through this issue, Romania will be among the countries that have both modern legislation and an active covered bonds market.
These bonds are guaranteed, according to Law no. 304/2015, with claims arising from mortgage/real estate investment contracts in progress, but the covered bond issue does not imply any change in the previously agreed terms of the contract with the bank’s customers or credit-related collateral.