Romania’s Banca Transilvania announces €700 FX MREL bond

By bne IntelliNews September 27, 2024

Romania’s leading financial group Banca Transilvania announced the final results of the FX bond issued on September 25, when it raised €700mn in bonds maturing 2030 listed on the Dublin Stock Exchange and eligible for the Minimum Requirement for Own Funds and Eligible Liabilities (MREL).

This is the second year running that BT has issued under the Sustainable Finance Framework. The funds raised will help finance sustainable projects in line with the eligibility criteria of the Sustainable Financing Framework: support for SMEs in underdeveloped regions of Romania, access to healthcare and education, as well as initiatives that support the green transition — green buildings, renewable energy projects, clean transportation and ecological farming.

"We are delighted with the interest shown by investors in this issue, which once again demonstrates the strength of Banca Transilvania and the potential of our country. The yield mix, the number of investors, the size of the transaction and the total demand set new benchmarks for BT,” said Ӧmer Tetik, CEO of Banca Transilvania.

The favourable financial market conditions — investor demand exceeded €2.5bn — and the dynamics of the order book resulted in a final coupon of 5.125 per annum, yielding 40 basis points lower than initially expected.

The robust demand also encouraged the bank to lift the size of the issue from €600mn to €700mn.

#romania #transilvania #tlv #banking #mrel

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