The tranche in Romanian currently has an interest rate of ROBOR 3M + 1.4% and the tranche in foreign currency has an interest rate of 1.5026% per annum.
The funds obtained by IIB will be used to finance the existing loan portfolio and the new loans given to the EU member states, respectively to refinance debts.
“This year rating upgrades from Standard & Poor’s and Moody’s, in the context of IIB’s continuously improved diversification of the lending and funding and quality of treasury assets, was materialized in tighter spreads for both tranches comparing with IIB’s last year transaction”, commented Nikolay Kosov, the Chairperson of IIB.
The value of IIB bonds issues grew from one year to another, starting from RON111 million in 2015, to RON300 million in 2016, to the equivalent of EUR125 million (EUR60 million + RON300 million) in 2017, reaching about EUR145 million (RON300 million + EUR80 million) in 2018.
“IIB successfully reduced the spread for the RON tranche by 10 bps and for the EUR tranche by 25 bps comparing with last year’s deal, concluding the new transaction at ROBOR 3M + 140 bps for RON tranche and Mid-swaps +140 bps for EUR tranche”, stated the Deputy Chairperson of the IIB, Jozef Kollar, responsible for funding.
The issue was intermediated by BT Capital Partners, the investment banking and capital markets unit of the Financial Group Banca Transilvania as Lead Manager, jointly with BRD – Groupe Societe Generale and ING Bank.
“The Romanian capital market reconfirms its high level of attractiveness and it is gratifying that the increased interest reported last year on the bonds segment continues in 2018. IIB is an example of how to constantly capitalize on the potential of the Romanian market, where it has issued corporate bonds for four years in a row. Now, we are talking about two offerings of bonds issued by the same entity, in lei and euros, at the same time, using the Romanian capital market infrastructure, which allows for trading and settlement directly in euros,” said Adrian Tanase, CEO of BVB.
“This successful IIB bonds issue also marks the return of ING to the local capital market. Thus, we can actively contribute to the development of the non-bank financing on the Romanian market in order to diversify the financing sources of companies and financial institutions. We aim to stimulate the interest of both issuers and investors in such transactions in the future, through the efforts of our local team and the international network of ING. We congratulate the IIB team for this achievement,” said Mihaela Bitu, Head of Wholesale Banking ING Bank Romania.
The IIB successfully placed two bond issues on the Romanian market in 2015 and 2016, worth a total RON411 million (EUR90 million).