“The proceeds are envisaged to help strengthen Banca Transilvania’s capital base,” EBRD said.
EBRD’s subscription was calculated pro-rata to its shareholding in the issuer. EBRD is Banca Transilvania’s largest shareholder, with a stake of 14.6%.
Banca Transilvania said last week that its seven-year convertible bonds sale drew roughly EUR10.5 million from shareholders during a preference right bid ended May 8.
It said shareholders bought a little over 17.453 million convertible bonds during the preference right bid in exchange for EUR10.472 million, one third of the planned amount.
The remaining bonds, worth EUR19.53 million, will be offered for subscription between May 9 and May 21.
The International Finance Corporation, the lending arm of the World Bank and a shareholder in Banca Transilvania, will be able to subscribe bonds worth EUR18.94 million during the second stage of the offer, while eligible investors can bid for the remaining bonds worth approximately EUR0.59 million.
IFC owns 3.54% in Banca Transilvania.
Banca Transilvania last issued convertible bonds in 2005, when it raised $24.1 million at a five-year bond sale.