Romanian small-sized lender Idea Bank, controlled by Polish Getin Holding, has issued EUR 5 million worth of 6-year bonds with an 8.5% coupon attached, Ziarul Financiar daily informed.
However, the bank did not disclose the yield or the possible discount in the deal.
The bond was subject to a private placement managed by BT Capital Partners. The bonds will be traded on the AeRO market at the Bucharest Stock Exchange.
Although the actual yield of the issue is not known, it is very likely that Idea Bank paid a rather high premium for its bonds, given its small size and lack of backing from a parent financial group. For comparison, Banca Transilvania paid 3.55% (6M EURIBOR+3.75%) for EUR 285 million bonds issued last June with a 10-year maturity. At par, the 8.5% coupon of Idea bank’s bonds is the equivalent of an 8.73% yield, which is a massive 5 percentage points above what BT paid last June.
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