Romania’s leading bank, Banca Transilvania, announced the successful completion of its first AT1 (Additional Tier 1) bond issuance on the Dublin Stock Exchange. The final volume of subscribed orders reached over EUR 2.65 billion, representing an oversubscription 5.3 times higher than the amount BT intended to raise.
More than 180 investors, a record in Banca Transilvania’s bond issuances, from the European Union, the United Kingdom, the US, and other markets supported the transaction, both in terms of reception on the capital markets and the price setting.
In just two hours from the launch of the transaction, investors submitted orders worth EUR 2 billion, in a book that reached a maximum level of approximately EUR 3.25 billion with help from US-based investors.
Considering the strong demand, Banca Transilvania managed to reduce the coupon rate from 7.625% (as initially estimated) to 7.125% as the final yield.
The final price of the AT1 bonds reflects only 200 basis points above the last senior unsecured transaction from September 2024, a difference that is below the average of other banks in Western Europe. It is also the largest AT1 bond issuance in Central and Eastern Europe, according to the bank.
“The AT1 bond issuance complements our solid capital position, while also allowing for a more diversified and optimized capital structure, for the benefit of shareholders and clients. With this capital instrument issuance, we are fully prepared to continue our growth, and I am particularly pleased to see the high interest coming from international markets,” declared Ömer Tetik, CEO of Banca Transilvania.
The bonds are denominated in euros and have an early redemption option starting on November 27, 2030. The minimum subscription level was EUR 200,000.
The bonds are expected to be issued on November 27, 2025, on Euronext, the Dublin Stock Exchange.
The new bond issuance raises the value of the 6 bond issuances launched by Banca Transilvania starting from 2023 to nearly EUR 3 billion. Except for the bond issuance in RON and the subordinated bond placement, all other bonds are listed on Euronext Dublin.
(Photo source: Alpar Benedek | Dreamstime.com)
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