Romania's state bank CEC raises over EUR 130 mln with 3-year bond issues

Romanian state-owned bank CEC raised in private placements at the end of last year over RON 650 mln (EUR 130 mln) in local and foreign currency with two issues in private placements aimed at institutional investors. More precisely, it sold EUR 97.3 mln and RON 175 mln worth of bonds, both issues with a three-year tenant.

The issues are part of a broader EUR 600 mln multi-annual issue scheme aimed at eventually bringing the bonds on the local stock exchange BVB after their initial listing at the Luxembourg Exchange.

"After 3 years of growth and modernization, CEC Bank has successfully attracted private financing through the capital markets. Thus, we can continue the strategy of transforming CEC Bank into a modern and agile bank", said Bogdan Neacșu, CEC Bank CEO, according to Economica.net.

Within the broader multi-annual issue scheme, CEC Bank can issue bonds of various types (senior unguaranteed, subordinated or bonds eligible for the minimum requirement of own funds and eligible liabilities ), within the limit of a ceiling of EUR 600 mln (or equivalent in other currencies ), for periods between 2 and 10 years.

The bank intends to list these instruments on the Bucharest Stock Exchange in the coming weeks.

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