“We’ll most likely be stepping into the market again in the second quarter. We will issue a five-year bond and we are considering an indicative target of RON500 million,” said James Stewart, Vice-President of Treasury & Capital Markets with the bank.
“The five-year maturity is important to us.”
In 2013, Raiffeisen Bank sold a planned RON225 million of three-year corporate notes at an average yield of 5.5% a year. The issue was assigned a Ba1 senior unsecured debt rating by Moody’s Investors Service.
Raiffeisen Bank’s official said Romania needs a law allowing the issuance of covered bonds (bonds backed by cash flows from mortgages or public sector loans) and urged the central bank to complete the necessary legal framework.
“The banking system needs covered bonds. The central bank shouldn’t be afraid of something as normal as this,” he added.