Over 80 institutional investors, including EBRD, behind Banca Transilvania’s EUR 500 mln bond

More than 80 international institutional investors from nearly 20 countries, including the European Bank for Reconstruction and Development (EBRD), are among the buyers of the bonds issued by Romania’s leading financial institution Banca Transilvania (BVB: TLV). Particularly, the anchor investor EBRD contributed EUR 90 mln to the EUR 500 mln issue announced on April 24.

The 9% yield paid on 4-year euro-denominated notes stirred investors’ interest enough to place nearly three times more orders than the EUR 300 mln initial target size of the issue.

The bond issue marks the debut of Banca Transilvania on the international market and is the first, in terms of size, issued in Europe after the turmoil that marked the global banking sector in March 2023, Banca Transilvania said, indirectly explaining the size of the yield seen by some as rather high.

The issue consists of 4-year senior non-preferred bonds at a yield of 9% per year and is listed on Euronext Dublin (ISIN XS2616733981).

The Global Coordinator was Morgan Stanley, and the Co-Managers were BT Capital Partners and ING Bank, selected by Banca Transilvania based on reputation, experience and relevant bond track record.

(Photo source: Bancatransilvania.ro)