Bonds will be subordinated and will have a 10-year maturity.
“The coupon will range from 4.5 to 5% and the final value is to be set depending on investors’ interest through the auction method on the Bucharest Stock Exchange and through the lender’s decision”, said Emil Bituleanu, CEO of Libra Internet Bank.
The decision comes in the context in which the lender reported a net profit of over RON100 million and assets of over RON6 billion in 2019, confirming its upward trend in recent years.
“The amounts attracted are meant to bolster the lender’s growth rate, of 30% annual average, in the last five years”, Bituleanu also said.
The private placement is due to be completed until March 31, 2020. Subsequent to the issue, the bonds listing on the stock market is also envisaged.
Libra Internet Bank, 66.7% owned by US investment fund Broadhurst Investments, targets a 25% increase in profit in 2020.
Libra Internet Bank increased its market share to 1.3% in 2019, heading towards 1.5% in 2020.