Small Romanian lender Libra issues EUR 10 mln bonds to finance expansion

Libra Internet Bank, a small Romanian lender with a focus on liberal professions, real estate, agribusiness, and SMEs, announced that it plans to carry out a private placement of bonds in amount of EUR 10 mln (or more, depending on demand), to be later listed on the Bucharest Stock Exchange (BVB).

The subordinated bonds will have a maturity of 10 years and the placement will be managed by local brokerage firm Tradeville.

"As regards the coupon, it will be in the range of 4.5-5%, while the final size of the issue will be decided at a later moment depending on the interest expressed by the investors in the auction to be held on the Bucharest Stock Exchange,” explained Emil Bituleanu, Managing Director of Libra Internet Bank.

Libra reported a net profit of over RON 100 mln (EUR 20 mln) in 2019 and assets worth over RON 6 billion (EUR 1.26 bln) at the end of the year. The results are in line with the upward trend demonstrated by the bank during the recent years.

"The funds will be used to support the bank’s expansion that has been 30% per year on average over the past five years," added Bituleanu.

Libra is owned by US investment fund New Century Holding and its market share was 1.2% at the end of 2019.

(Photo source: Facebook/Libra Internet Bank)