Banca Transilvania plans EUR 1 bln bond issues over the next ten years
The Managing Board of Banca Transilvania (BVB: TLV) invited shareholders on October 18 to approve a programme of bond issues, with “a flexible structure, through several separate issues,” worth a total of EUR 1 bln, to be carried out over the next ten-year period.
The individual issues would be denominated in euros, local currency (RON) or another currency, as the case may be, under market conditions in terms of interest rate, with a maturity of not more than 10 years, with the coupon frequency of the annual or semi-annual. The powers to determine the conditions of the issuance program would be delegated to the Managing Board.
The first bonds will be offered under a private placement to qualified investors and/or up to 150 natural or legal persons other than qualified investors per Member State in accordance with the applicable legislative framework, with the delegation of powers to the Board of Directors on the offer of bonds for subsequent tranches. The bonds will later be listed on the regulated market of the Bucharest Stock Exchange or other markets.
Banca Transilvania has RON 13.8 bln (EUR 2.7 bln) market capitalization, and the pension funds (Pillar II) hold 24% of its shares.
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