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BT's convertible bond issue was successfully completed and fully subscribed

2013-05-22

Banca Transilvania hereby announces the closing of the Eur 30 million issue of subordinated convertible bonds.

Horia Ciorcila, Chairman of Banca Transilvania’s Board of Directors, stated: “The issue was a success, attracting full subscription, just as expected. I would like to thank our shareholders and investors for their trust in Banca Transilvania. The amount generated will strengthen our bank’s capital base, by diversifying the structure of own funds and supporting the bank’s future development.” 

This is Banca Transilvania’s second bond issue. The previous issue was launched in 2005, representing a first on the Romanian capital market at that time.

The bond issue of 2013 was divided into three stages: initially, the entire amount of Eur 30 mill. was offered for subscription to Banca Transilvania’s shareholders, according to pre-emptive rights. As a result, over 1.000 BT shareholders – including the EBRD and IFC, which are amongst the bank’s largest shareholders – exercised their right to participate in the issue. Subsequently, the amounts left at the end of this first stage were allocated in two tranches: one, amounting to Eur 18.9 mill. and reserved for IFC, which subscribed the entire tranche, and another - open to qualified investors.

These instruments are subordinated unsecured convertible bonds, nominative, issued in 2013, and due in 2020. The face value of each bond is Eur 0.6. The interest level is Euribor 6M + 6.25%, with two interest payment days per year – every six months – starting with July 15, 2013. The first conversion window is set for the summer of 2014, recurring until maturity, on a yearly basis.

The bond issue was approved by the General Shareholders’ Meeting held last year in April.

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