Transilvania Bankraised 1 billion euros from international markets through a bond issue oversubscribed by almost four times, confirming the strong interest of investors to support BT's growth prospects.

Through this new issuance, Banca Transilvania capitalizes on the trust offered by its solid base of international investors, mitigating the impact of high volatility in the financial markets. Continuing to promote an example of financial performance, as well as the potential of the Romanian economy, BT moves into a new stage of maturity and recognition as a relevant issuer among financial institutions in Europe.

This bond issuance represents the first instrument with a rating of type Investment Grade, BBB-, rated by the rating agency Fitch. 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 objective of a broad global distribution. As an Intermediary, BT Capital Partners, the brokerage company of the Banca Transilvania Group, coordinated the demand of investors from the local market and from international financial institutions.

The order book was 3.8 billion euros, and the orders placed come from over 200 institutional investors from 32 countries, mostly from Europe, representing 46% of the total, as well as from the United Kingdom, the USA, or Asia. The participants are investment funds, pension funds, sovereign funds, commercial banks, insurance companies, private banks, and supranational institutions, showing the diversity and quality of the investor base.

The demand raised by them contributed to reducing the coupon rate from 5.125% - as initially estimated - to 4.75%, a reduction of over 30 basis points.

Thank you to the investors for their trust in Banca Transilvania and in Romania. The result of this bond issuance, with a demand almost four times over the amount offered for sale, once again confirms BT's performance and the fact that Romania is attractive to investors, even in an international context marked by uncertainties. The strong interest shows the bank's solidity, as well as the increasingly important role of our country in the region. The transaction coordinates – price and volume – are a benchmark for banks in our country at this time and thus help the entire market, as well as the country's financing potential. The attracted amounts will help us support our clients, the local economy, and investment projects – with courage and, at the same time, prudence and responsibility.

Ömer Tetik
General Director
Transilvania Bank

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 contribute to maintaining an optimal level of funds, distinct from customer deposits, which are guaranteed by the Bank Deposit Guarantee Fund. BT is one of the systemically important banks in Romania, which involves certain additional capital and eligible funding requirements.

The legal consultants were Filip&Company, Freshfields Bruckhaus Deringer LLP, Clifford Chance Badea and Clifford Chance LLP. Deloitte Audit SRL acted as financial auditor, and KPMG Tax SRL was the tax consultant.

4 billion EUR is the amount raised by BT through bond issuances, starting with 2023

Banca Transilvania attracted, starting with 2023, almost 4 billions of euros through the seven bond issues carried out so far. The new issue consolidates BT's position as one of the most active issuers on the local and regional market.