The Cluj-based bank says that the issue was oversubscribed in just a few hours, with investors placing orders amounting to over EUR850 million. More than 80% of the total issue was subscribed by international investors from nearly 20 countries.
Eighty investors – investment funds, financial institutions, pension funds, commercial and central banks and insurance companies, the bank says, subscribed to the offer and EBRD was the anchor investor with a subscription amounting to EUR90 million.
The bond issue marks the debut of Banca Transilvania on the international market and is the first, in terms of size, issued in Europe, after the turmoil that marked the international banking sector in March 2023.
“The success of the issue – in record time and significantly oversubscribed – at a time when markets are recovering from a difficult month of March, shows the confidence of international investors in BT, in its strategy and prospects, and in Romania,” said Оmer Tetik, CEO of Banca Transilvania.
“It is a big step, paving the way for similar deals in the Romanian banking system. The amounts attracted will be treated as own funds. The issue is part of BT’s growth plan by maintaining the accelerated pace of financing the economy and Romania.”
The issue consists of four-year senior non-preferred bonds at a yield of 9% per year and is listed on Euronext Dublin (ISIN XS2616733981).
The global coordinator was Morgan Stanley and the co-managers were BT Capital Partners and ING Bank, selected by Banca Transilvania based on reputation, experience and relevant bond track record.
The European MREL standards require banks to ensure an optimal level of MREL-eligible funds at all times, separate from customer deposits, which are guaranteed by the Bank Deposit Guarantee Fund.
(English version by Loredana Fratila-Cristescu)