The International Investment Bank (IIB) successfully closed its fifth and largest bond issue in local currency on the Bucharest Stock Exchange on October 30, and raised RON500mn (€105mn), the bank announced. The bonds will begin trading on the Bucharest Stock Exchange around November 7.
This issue is the largest outstanding corporate/supranational bond ever on the Romanian market and represents the first fixed rate bond issued in Romania by the IIB.
Following this transaction, the Romanian capital market is currently the largest market for IIB’s debt origination (44% of the total long-term funding) and RON debt has the largest share (27%) in the breakdown by currencies.
“We are proud to see the outcome of this last bond issue. It vividly demonstrates the international investor community’s confidence in the bank’s strategic course and a sign of the bank’s recognition as a Europe-based multilateral development institution,” Nikolay Kosov, the chairperson of the IIB management board, commented.
Total orders amounted to more than RON500mn and the final book showed a very diversified investor base represented by 18 institutional investors. The placement was managed by BT Capital Partners S.A. (Investment Banking & Capital Markets arm of Banca Transilvania Financial Group) and ING Bank N.V. Amsterdam - Bucharest branch.
This is the fifth bond issue the IIB has carried out in Romania. It will have a maturity of three years and a fixed 3.98% coupon payable annually, as shown in the documents published on the Stock Exchange.
The bonds received a A3/stable rating from Moody's, BBB+/positive rating from Fitch and A-/stable from Standard & Poor's.