Romania’s Banca Transilvania raises EUR 1 bln with bond placed on international market

Banca Transilvania (BVB: TLV) on April 15 announced that it raised EUR 1 billion from international markets through a bond issuance that was almost four times oversubscribed, confirming investors’ strong interest in supporting BT’s growth prospects.

This bond issuance represents BT’s first Investment Grade instrument, rated BBB- by Fitch Ratings.

Strong investor demand (EUR 3.8 billion) contributed to a reduction in the coupon rate from the initially estimated 5.125% to 4.75%, a decline of more than 30 basis points.

The price of the bank’s shares rose by 2.8% during the trading day, bringing the bank's market capitalization to RON 41 billion (EUR 8 billion).

The bank’s shares surged by 60% y/y, while they are still trading at a still moderate profit-to-earnings ratio (PER) of just over 9.

The transaction was coordinated by Goldman Sachs Bank Europe SE, J.P. Morgan, Morgan Stanley, Nomura, and BT Capital Partners with the objective of achieving broad global distribution. Acting as Intermediary, BT Capital Partners – the brokerage arm of the Banca Transilvania Group – coordinated demand from local investors and international financial institutions.

The orderbook reached EUR 3.8 billion, with orders placed by over 200 institutional investors from 32 countries, predominantly from Europe (46%), as well as from the United Kingdom, the United States, and Asia.

Participants included investment funds, pension funds, sovereign funds, commercial banks, insurance companies, private banks, and supranational institutions, highlighting both the diversity and quality of the investor base.

(Photo source: Bancatransilvania.ro)