Banca Transilvania raises EUR 200 mln from IFC and AAIB for green mortgage lending

Romania’s largest financial group Banca Transilvania (BVB: TLV) issued EUR 200 million of subordinated debt to the WB’s International Financial Corporation (IFC) and the Asian Infrastructure Investment Bank (AIIB).

The issue was already listed on the Bucharest Stock Exchange (BVB) on July 17.

The 10-year bonds have an annual variable rate and a coupon of 6M EURIBOR + 6.68pp -- overall, more than 10% currently – payable twice a year.

This is the second issue of bonds for Banca Transilvania, and the total value of bonds available for trading is EUR 485 million, the bank says.

The EUR 200 million issue aims to increase access to residential mortgages in Romania while helping mitigate climate change and strengthen the country’s banking sector.

“The new financing facility organized by IFC helps us intensify our financing efforts in areas of interest for the transition to a sustainable economy in Romania. Thus, directing the obtained funds towards energy efficient mortgages will decrease energy consumption and greenhouse gas emissions while ensuring improved housing conditions“, said Ӧmer Tetik, CEO of Banca Transilvania.

(Photo source: Facebook/Bursa de Valori Bucuresti)