Romania's leading financial group Banca Transilvania issues EUR 300 mln MREL FX bonds
<p>Romania's leading financial group, Banca Transilvania (BVB: TLV), has issued EUR 600 mln of FX bonds with a maturity of six (6) years on the international market in an unannounced operation on September 25, according to Bloomberg and <a href="https://www.profit.ro/bloomberg/ultima-ora-banca-transilvania-imprumuta-600-milioane-euro-printr-o-emisiune-pe-piata-externa-21744745?mc_cid=1c4e726e50&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Profit.ro</a>.&nbsp;The demand was nearly quadruple (EUR 2.3 bln).&nbsp;</p>

<p>The issue's arrangers are ING, JP Morgan, Morgan Stanley, Nomura, and BT Capital Partners.</p>

<p>The issue was launched with an opening rate of midswap +335 basis points (bp), however, on the background of strong demand from investors, it went down to midswap +225bp. The 6-year midswap rate was 2.32% at that time.</p>

<p>The issue is intended to strengthen own funds requirements (MREL) and is of senior non-preferred type, intended for qualified investors. It comes on top of the other two MREL bond issues last year.</p>

<p>In November 2023, TLV managed to place the second MREL bond issue of that year on the international financial markets: EUR 500 mln for a period of 5 years, with a yield of 7.25%. In the previous one, the bank paid almost 9% for 4-year bonds.&nbsp;</p>

<p>In April 2023, TLV issued its first FX bond on the international market, EUR 500 mln senior non-preferred bonds.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: Banca Transilvania)</em></p>