Banca Transilvania raised €1 billion on international markets through a bond issue that was oversubscribed by nearly four times, confirming investors' strong interest in supporting BT's growth prospects.
Through this new issuance, Banca Transilvania capitalizes on the confidence provided by its solid base of international investors, mitigating the impact of high volatility in financial markets. By continuing to showcase its financial performance and the potential of the Romanian economy, BT is entering a new phase of maturity and recognition as a significant issuer among European financial institutions.
This bond issue represents the first investment-grade instrument, rated BBB- by Fitch Ratings. The bond sale was coordinated by the investment banks Goldman Sachs Bank Europe SE, J.P. Morgan, Morgan Stanley, Nomura, and BT Capital Partners, with the aim of achieving broad global distribution. As the Intermediary, BT Capital Partners, the brokerage firm of the Banca Transilvania Group, coordinated investor demand from the local market and from international financial institutions.
The order book totaled 3.8 billion euros, with orders placed by over 200 institutional investors from 32 countries, primarily from Europe, accounting for 46% of the total, as well as from the United Kingdom, the U.S., and Asia. Participants include investment funds, pension funds, sovereign wealth funds, commercial banks, insurance companies, private banks, and supranational institutions, highlighting the diversity and quality of the investor base.
Strong demand from these investors contributed to lowering the coupon rate from 5.125%-as initially estimated-to 4.75%, a reduction of over 30 basis points.
We thank investors for their confidence in Banca Transilvania and in Romania. The outcome of this bond issue, with demand nearly four times the amount offered for sale, confirms once again BT's performance and the fact that Romania is attractive to investors, even in an international context marked by uncertainty. The strong interest demonstrates the bank's solidity, as well as our country's increasingly important role in the region. The terms of the transaction-price and volume-serve as a benchmark for banks in our country during this period, thereby benefiting the entire market as well as the country's financing potential. The funds raised will help us support our customers, the local economy, and investment projects-with courage, yet prudently and responsibly.
Ömer Tetik
General Manager,
, Banca Transilvania
The bonds mature in 2032, will be listed on the Dublin Stock Exchange (Euronext Dublin), and are eligible for the Minimum Requirement for Own Funds and Liabilities (MREL). They help maintain an optimal level of funds, separate from customer deposits, which are guaranteed by the Bank Deposit Guarantee Fund. BT is one of the systemically important banks in Romania, which entails certain additional capital and eligible funding requirements.
The legal advisors were Filip&Company, Freshfields Bruckhaus Deringer LLP, Clifford Chance Badea, and Clifford Chance LLP. Deloitte Audit SRL served as the financial auditor, and KPMG Tax SRL was the tax advisor.
BT has raised €4 billion through bond issuances since 2023
Since 2023, Banca Transilvania has raised nearly 4billioneuros through the seven bond issues it has conducted to date. The new issue reinforces BT's position as one of the most active issuers on the local and regional markets.