Romania’s Banca Transilvania (BVB: TLV), the largest local bank by assets, issued EUR 500 mln of senior non-preferred bonds – significantly more than the target size of the issue (EUR 300 mln), Profit.ro announced.

The four-year bonds have a 9% coupon attached, according to Ziarul Financiar. The coupon is lower than initially estimated by analysts (9.25%-9.5% for EUR 300 mln size of the deal), the daily commented quoting Financing Review.

Eventually, the investors placed orders for EUR 850 mln of TLV bonds.

The successful deal may open the market to other CEE banks, although issuers still need stability to continue trading, commented Global Capital.

In the autumn of 2022, TLV announced plans to borrow up to EUR 1 bln from qualified investors through unsecured bonds designed to cover the minimum requirements for own funds and eligible assets (MREL requirements).

iulian@romania-insider.com

(Photo source: Banca Transilvania)