Romanian lender UniCredit Tiriac Bank aims to raise over EUR 100 million from recently – opened bond issuance

UniCredit Tiriac Bank started a new bond issuance on Friday, June 14, targeting raising some EUR 113 million. The five-year maturity bonds in RON could be supplemented with 20,000 new bonds, up to 70,000 in total. The offer will be considered successfully completed if at least 70 percent of the target amount is subscribed. The denominated bonds each amount to RON 10,000, and the minimum subscription amount is 50 units. The offer will close on June 21. The coupon is of minimum 6 percent per year, and the final coupon will be publicly announced no later than on the fourth business day of the offering opening, in accordance with the regulation in place. Coupon payments will be made on June 15 and December 15 each year, with bonds being due on June 15, 2018. Subscriptions can be made exclusively via the issuance broker, SSIF BROKER. "We are firmly confident in the success of our bond issuance, considering the early discussions we have had with institutional investors both local and international and their positive reactions. This bond issuance is an important element in our long term strategy to diversify our financing sources, and the terms of the issuance were carefully selected after a detailed monitoring and projection of the market conditions. Through this initiative, we reaffirm our strong long-term commitment to Romania and to the development of the local capital market”, said Rasvan Radu, CEO / Executive President of UniCredit Tiriac Bank. The net funds resulting from the bond issue, after payment of commissions, fees and other charges, will be used for general funding purposes of the bank. UniCredit Ţiriac Bank posted a net profit of EUR 13.7 million in the first quarter of 2013, up by 166 percent on the same period of 2012. The bank ended the first quarter with EUR 3.9 billion in loans, up 6.8 percent, while deposits were at EUR 2.7 billion, a growth of 9.2 percent. The consolidated assets of UniCredit Tiriac Bank, UniCredit Leasing Corporation and UniCredit Consumer Financing were at EUR 6 billion, while the net profit of the group was of almost EUR 14 million, more than double the same period of last year. UniCredit Ţiriac Bank and UniCredit Consumer Financing IFN recently took over the Retail and Royal Preferred Banking business of RBS (Bank) Romania, which has EUR 315 million in assets and EUR 230 million in liabilities. editor@romania-insider.com