Romanian Unicredit Tiriac Bank has shareholders’ OK for EUR 500 mln bond issuance

Romanian lender Unicredit Tiriac Bank’s management may run, if needed, a medium term notes (MTN) bond issuance programme, with an EUR 500 maximum million ceiling of the principal, according to the empowerment received earlier this year from its shareholders. The bonds' maximum maturity can be seven years if issued in EUR, or five years if they are issued in local currency (RON), according to local business publication Zf.ro. In late June this year, Unicredit Tiriac Bank raised some EUR 121 million (RON 550 million) from the bank’s first bond issuance, over the initial targeted amount of some EUR 113 million (RON 500 million). The offer was completed on June 21, based on subscriptions of over 30 local and international institutional investors, including international funding institutions (EBRD and IFC), funds managed by the main asset management companies, pension funds, insurance companies, local and international banks, according to Unicredit. The Romanian lender 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. Irina Popescu, irina.popescu@romania-insider.com