Banca Transilvania raises RON 1.5 bln in first sustainable bond issue on Bucharest Stock Exchange

Romania's largest lender, Banca Transilvania (BVB: TLV), announced it successfully raised RON 1.5 billion (EUR 300 million) with its first sustainable bonds issue in RON on the Bucharest Stock Exchange, which demonstrates the high interest of local investors, despite the uncertain economic context.

The issue consisted of senior non-preferred bonds, having a maturity of 7 years, with an option to be redeemed after 6 years and a minimum subscription of RON 600,000 (EUR 120,000). The coupon attached is 8.875%.

The bonds, rated BBB-, Investment Grade by Fitch, will be listed on the Bucharest Stock Exchange in July 2025.

The amount raised from investors will be used to finance sustainable projects in accordance with the eligibility criteria of the BT Sustainable Finance Framework and falls within the Minimum Requirement for Own Funds and Eligible Liabilities (MREL).

In the first hours after the launch, half of those who invested in the bonds were Romanian institutional investors - investment funds, pension funds, commercial banks, insurance and trading companies.

At the same time, the issue attracted the attention of international investors, which shows a growing interest in the Romanian capital market. Nonetheless, anchor investors, such as development banks and international funds, supported Banca Transilvania's endeavor on the Bucharest Stock Exchange.

The new bond issue brings the value of the 5 bond issues launched by Banca Transilvania since 2023 to almost EUR 2.5 billion (equivalent).

Apart from the RON bonds issue and the subordinated bonds placement, all the other bonds are listed on Euronext Dublin. This has enabled the bank to reach a wider range of investors.

(Photo source: Banca Transilvania)