It is the bank’s first subordinated bond issue on international financial markets, contributing to the objective of diversifying and optimizing its base of own funds and eligible liabilities. The transaction was completed in a market context marked by high volatility and a selective approach by investors towards new issues.
More than 100 institutional investors from 30 countries participated in the transaction, the majority from Europe, representing 44% of demand, alongside investors from the United Kingdom, the United States and Asia. Demand was mainly supported by real-money investors, including investment funds, pension funds, sovereign funds and insurance companies, alongside commercial and private banks and supranational institutions.
Banca Transilvania managed to reduce the initially indicated pricing level by 0.35%, a level similar to recent issues of such instruments in more stable geographies.
“Capital is the fuel of growth in the economy. Through this bond issue, we are strengthening our capacity to finance Romania’s future projects, companies and population, while also having solid capital indicators and a prudent financial profile,” said Ömer Tetik, General Manager, Banca Transilvania.
The subordinated bonds were issued at a yield of 6.216%, with a fixed coupon of 6.122% p.a., and have a maturity in 2037, with the possibility of being redeemed starting in 2032. The issue was listed on the Dublin Stock Exchange (Euronext Dublin).
The sale of the bonds was coordinated by the investment banks Goldman Sachs Bank Europe SE, ING Bank N.V., J.P. Morgan SE, Citigroup Global Markets Europe AG and BT Capital Partners. As Intermediary, BT Capital Partners, the brokerage company of the Banca Transilvania Group, coordinated demand from the local market and from international financial institutions. The bond issue benefited from the legal expertise of the law firms Filip & Company, Freshfields Bruckhaus Deringer LLP, Clifford Chance Badea and Clifford Chance LLP. Deloitte Audit SRL was the financial auditor, while KPMG Tax SRL was the tax consultant.
Since the beginning of 2023, Banca Transilvania has launched eight bond issues, through which it raised approximately EUR 4.5 billion from capital markets, consolidating its position as Romania’s leading banking issuer and one of the most active financial issuers in Central and Eastern Europe.
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