Banca Transilvania (BT) sold bonds of 700 million euros on Wednesday, through a new issue in which the demand from investors was over 2.5 billion euros, informs a press release from the bank.

It is the second time in a row that BT launches a bond issue under the umbrella of the Sustainable Financing Framework.

According to the quoted source, the orders placed came from almost 170 institutional investors, mainly international ones, i.e. 95%.

„The offer was subscribed by 131 investment funds, pension funds, commercial banks, insurance companies and commercial companies from 28 countries from Europe, the USA, Asia, the Middle East, etc. More than 64% of the investors who subscribed to the sustainable bonds of BT, in turn, have ESG objectives in their investment policy”, states the press release sent to AGERPRES.

BT specifies that the attracted funds will contribute to the financing of sustainable projects, according to the eligibility criteria of the Sustainable Financing Framework: supporting SMEs from less developed regions of Romania; the population’s access to medical assistance and education; initiatives supporting the green transition – green buildings, renewable energy projects, transport, ecological agriculture.

„We are delighted by the investors’ interest in this issue, which once again shows both the attractiveness of Banca Transilvania and the potential of our country. The yield mix, the number of investors, the volume of the transaction and the total volume of demand set new benchmarks for BT”, said Ómer Tetik, general manager of Banca Transilvania, in the quoted press release.

In the first hour after the launch of the transaction, the orders placed by investors reached the level of over 1 billion euros, BT also benefiting from the vote of confidence of two international financial institutions. The favorable context of the financial markets and the dynamics of orders placed by investors led to a final coupon of 5,125/year, the yield being reduced by about 40 basis points compared to initial expectations. The whole sale process was completed in a few hours, and due to the high interest in the market, which persisted even after the price reduction, Banca Transilvania decided to increase the amount raised up to 700 million euros.

The bonds mature in 2030, are listed on the Dublin Stock Exchange and are eligible for the minimum requirement of own funds and eligible liabilities (MREL), contributing to the permanent assurance of an optimal level of funds, distinct from customer deposits that are guaranteed by the Guarantee Fund of Bank Deposits, according to European standards regarding banks.

The sale of bonds was coordinated by J.P. Morgan, Morgan Stanley, Nomura and ING Bank, (this also having the role of ESG consultant). BT Capital Partners, the brokerage company of the Banca Transilvania Group, was Co-manager for this issue. The legal consultants were Filip&Company, Freshfields Bruckhaus Deringer LLP, Clifford Chance Badea and Clifford Chance LLP. Deloitte Audit SRL was the financial auditor, and KPMG Tax SRL was the tax consultant.

The first issue of ESG bonds, also oversubscribed in a few hours, was announced by Banca Transilvania in November 2023, on which occasion it attracted 500 million euros.

Banca Transilvania is the largest bank in Romania and in Southeast Europe. As a universal bank, it covers all customer segments and business lines in the financial sector. It has over 20% market share, 4.3 million customers, over 10,000 employees, online banking solutions and 500 offices in 180 locations.

AGERPRES