Garanti Bank pulls EUR 68 million from Romanian capital market through bond issue

The Romanian subsidiary of Turkish banking group Garanti Bank managed to attract EUR 68 million (RON 300 million) through an issue of non-guaranteed bonds in Romanian currency lei which was made on the Romanian capital market. The offering opened on May 26 and closed early on May 27 due to full subscription, the bank announced.

The total nominal value of the bonds issued amounted to RON 230 million, with the option to increase this amount to a maximum of RON 300 million. The bonds issued have an annual interest rate of 5.47 percent and have a 5-year maturity, and are due in 2019. The sale of bonds was arranged by BRD – Groupe Societe Generale.

“The oversubscription to this bond issue shows that investors have high interest and great confidence in Garanti Bank and in our growth potential. We are happy with this transaction’s success, as it offers us a series of benefits, such as being able to diversify our financing sources and boost our client’s lending”, said Ufuk Tandogan, CEO Garanti Group Romania.

Garanti Bank will submit the needed documentation to have the bonds trading as soon as possible on the regulated market managed by the Bucharest Stock Exchange.

Last year, Garanti Group Romania, which consists of Garanti Bank, Garanti Leasing and Garanti Consumer Finance, had a net consolidate profit of EUR 27 million, while its revenues were EUR 118 million, 11 percent higher than in 2012. The group’s assets were up 7 percent, to EUR 1.93 billion.

Garanti is the second bank to issue bonds on the Romanian capital market this year, after Raiffeisen Bank managed to attract EUR 113 million (RON 500 million) at the beginning of May, by also selling 5-year bonds in RON. Raiffeisen’s bonds pay a 5.5 percent interest. Last year, Raiffeisen Bank and UniCredit Tiriac Bank managed to get some EUR 175 million through bond sales on the local market.

Procredit Bank Romania, one of the smaller local banks, also plans to get some EUR 24.6 million through a bond issue.

Andrei Chirileasa, [email protected]

Romania Insider
Free Newsletters

Be up to speed with what’s happening in Romania! Choose from our 7 newsletters, covering the entire array of business, social, politics, and entertainment news

Subscribe now