Raiffeisen Bank gets EUR 112 mln financing through bond issue on the Bucharest Stock Exchange

Raiffeisen Bank, one of the largest banks in Romania, has made a successful five year unsecured bond issue of RON 500 million (EUR 112 million). The bonds carry a 5.35 percent fixed interest rate and reach maturity in May 2019. The bond offering closed on the same day it was launched, on May 7, and was oversubscribed, sources close to the transaction told Romania-Insider.com. Most money came from Romanian investors, but there were also international institutional investors as well who chipped in. The bonds will be listed on the Bucharest Stock Exchange mid May. This is the second bond offering that Raiffeisen Bank has made in less than a year. In July 2013, the bank issued three year bonds worth RON 225 million (EUR 51 million) on the local market. The bonds issued last year pay a 5.5 percent interest rate. Raiffeisen Bank has been the most profitable bank in Romania in the last two years. In 2013, the bank posted a consolidated net income of RON 483 million (EUR 109 million), 22 percent higher than the previous year. Total assets in December 2013 were of RON 26.9 billion (EUR 6 billion). Andrei Chirileasa, andrei@romania-insider.com