Romanian bank CEC raises EUR 119 mln with new MREL bond

Romanian state-owned bank CEC raised EUR 119 mln (RON 587 mln) upon placing its third bond under the Medium Term Note (MTN) scheme launched last December at the Luxembourg Exchange, which envisages an envelope of a total of EUR 600 mln (in local or foreign currency) bonds with maturities of 2 to 10 years eligible for MREL purposes.

The latest issue under the MTN is denominated in euros and was issued at a 7.5% yield, with a maturity of five years, the bank announced. Like the first two bonds issued in December, the latest one will be listed on Bucharest Stock Exchange (BVB).

In December, CEC issued local and foreign currency bonds with maturities of 3 years, in the amount of EUR 97 mln and RON 175 mln (EUR 35 mln). The yields were not disclosed at that time.

Raiffeisen Bank Romania, through the Investment Banking division, brokered the transaction through which the bonds issued by CEC Bank were offered to professional investors. For the entire bond programme, CEC Bank is provided consultancy by a consortium of international banks, with legal assistance from law firms Dentons and Clifford Chance through local offices.

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