Banca Transilvania (BVB: TLV) is preparing to launch a new Additional Tier 1 (AT1) bond issue, denominated in euros, with an indicative coupon of 7.625% (semiannual payment), according to Bloomberg information consulted by Economedia.ro.
The instrument is a EUR Benchmark Perpetual Non-Call 5.5-year (PerpNC5.5) issue, with fixed interest until the first reset date.
If the bonds are not redeemed early, the coupon will be recalculated every 5 years, based on the 5-year swap rate (5Y MS) plus the initial margin.
The issue’s arrangers are Bank of America, BT Capital Partners, JPMorgan, and Morgan Stanley.
The issue includes standard clauses for such instruments: the possibility of redemption in the event of tax changes, regulatory changes, or loss of eligibility as an equity instrument.
iulian@romania-insider.com
(Photo source: the company)
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