Banca Transilvania raised EUR 500 million on international markets through a subordinated bond issuance that attracted strong investor demand, with orders reaching nearly EUR 2 billion. The transaction was priced at a spread of only 0.45 percentage points above the yield of Romanian government Eurobonds with similar maturities.

The transaction was successfully completed in a market environment marked by high volatility and a selective approach by investors toward new issuances. By carefully timing the launch and maintaining constant dialogue with international investors, Banca Transilvania achieved a remarkable result, continuing to serve as a model of financial performance and discipline in capital management.

This is the bank’s first subordinated bond issuance on international financial markets, contributing to the objective of diversifying and optimizing its capital base and eligible debt. The strong and high-quality demand, coming from a diverse base of institutional investors, confirms once again the market’s confidence in Banca Transilvania’s financial profile, strategy, and growth prospects. Over 100 institutional investors from 30 countries participated in the transaction, the majority from Europe, accounting for 44% of the demand, alongside investors from the United Kingdom, the United States, and Asia.

The order book was notable not only for its size, but also for the quality and depth of investor demand. Interest came primarily from real-money investors, including investment funds, pension funds, sovereign wealth funds, and insurance companies, alongside commercial and private banks and supranational institutions. The geographic and institutional diversity of the investors highlights the breadth of BT’s international investor base, as well as the bank’s appeal to investors with a long-term investment horizon.

Banca Transilvania is capitalizing on the confidence shown in international markets, managing to reduce the initially indicated price level by 0.35 percentage points – a level comparable to recent issuances of such instruments in more stable jurisdictions.

Capital fuels economic growth. Through this bond issuance, we are strengthening our capacity to finance Romania’s future projects, companies, and individuals, while preserving solid capital metrics and a prudent financial profile. We thank investors for their strong interest and for supporting BT’s strategy, which is built on performance, responsibility, and a long-term vision.

Ömer Tetik
CEO
Banca Transilvania

The subordinated bonds were issued at a yield of 6.216%, carry a fixed annual coupon of 6.122% and mature in 2037, with Banca Transilvania retaining the option to redeem them from 2032. The bonds are listed on the Dublin Stock Exchange (Euronext Dublin).

The bond offering was coordinated by the joint lead managers Goldman Sachs Bank Europe SE, ING Bank N.V., J.P. Morgan SE, Citigroup Global Markets Europe AG, and BT Capital Partners. As the intermediary, BT Capital Partners, the brokerage company of the Banca Transilvania Group, coordinated investor demand from the local market and from international financial institutions. The bond offering benefited from the legal expertise of the law firms 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 as the tax advisor.

BT has raised approximately EUR 4.5 billion through bond issuances

Since the beginning of 2023, Banca Transilvania has launched eight bond issuances, raising approximately EUR 4.5 billion from the capital markets, thereby consolidating its position as the leading banking issuer in Romania and one of the most active financial issuers in Central and Eastern Europe.