Local lender UniCredit Bank plans to launch a bond issue of RON 500 million (EUR 109.5 million) on the Bucharest Stock Exchange, targeting exclusively qualified investors.

The bank considers increasing the issuance from 50,000 to 61,000 bonds in case of oversubscription.

The bonds have a maturity of three, five and seven years. For the first class, with a maturing date in 2020, the interest rate will range between 0.6%-0.7% per year plus ROBOR at every six months.

The ROBOR (Romanian Interbank Offer Rate) is the average interest rate for RON-denominated loans in the interbank market. For the 2022 class, the interest amounts to 0.8%-0.9% per year plus ROBOR at every six months. The bonds maturing in 2024 will have an interest rate of 1%-1.1% per year plus ROBOR at six months.

The bond issuance will take place between July 17-21. The bonds will be offered at a price of RON 10,000 (EUR 2,200) each.

editor@romania-insider.com