Romania's leading financial group Banca Transilvania issues EUR 300 mln MREL FX bonds

Romania's leading financial group, Banca Transilvania (BVB: TLV), has issued EUR 600 mln of FX bonds with a maturity of six (6) years on the international market in an unannounced operation on September 25, according to Bloomberg and Profit.ro. The demand was nearly quadruple (EUR 2.3 bln).

The issue's arrangers are ING, JP Morgan, Morgan Stanley, Nomura, and BT Capital Partners.

The issue was launched with an opening rate of midswap +335 basis points (bp), however, on the background of strong demand from investors, it went down to midswap +225bp. The 6-year midswap rate was 2.32% at that time.

The issue is intended to strengthen own funds requirements (MREL) and is of senior non-preferred type, intended for qualified investors. It comes on top of the other two MREL bond issues last year.

In November 2023, TLV managed to place the second MREL bond issue of that year on the international financial markets: EUR 500 mln for a period of 5 years, with a yield of 7.25%. In the previous one, the bank paid almost 9% for 4-year bonds.

In April 2023, TLV issued its first FX bond on the international market, EUR 500 mln senior non-preferred bonds.

(Photo source: Banca Transilvania)