Romanian state bank CEC raises EUR 300 mln with new FX bond

CEC Bank has successfully concluded a new issue of bonds worth EUR 300 million through a new issue of Eligible Senior Non-preferential Securities, intended to be classified as MREL eligible instruments, according to a press release from the bank.

The orders received accounted for more than double the target value announced by the banks, with placements from international and local investment funds, pension funds, banks, as well as from asset managers and private banking.

Investors' strong demand allowed the initial indicative price of 6% to drop by 37.5 basis points to a final price of 5.625%/

The euro-denominated bonds were issued under CEC Bank's EUR 1.5 billion MTN Program, approved by the Commission de Surveillance de Secteur Financiere (CSSF) Luxembourg, following the update of the base prospectus on November 18, 2024.

The securities will be admitted to trading at the Luxembourg Stock Exchange and the Bucharest Stock Exchange.

CEC Bank mandated Erste Group Bank AG and ING Bank NV as Joint Bookrunners and Co-Arrangers of the bond issue, while BT Capital Partners acted as Co-Manager. Dentons acted as legal advisor to CEC Bank, while Erste Group Bank AG and ING Bank NV were advised by Clifford Chance, through their offices in Bucharest and Frankfurt.

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