• Banca Transilvania has raised EUR 500 million from the international capital markets.
  
  
• This is the bank’s first AT1 (Additional Tier 1) bond issue in the international financial markets and, as such, a first for Romania.
  
  
• The bonds will be listed on Euronext, the Dublin Stock Exchange, in November 2025.
  
  
• The bond issue was rated B1 by Moody’s, reflecting BT’s strong fundamentals and effective risk management.
  
  

Banca Transilvania announces the successful completion of its inaugural AT1 (Additional Tier 1) bond issue on the Dublin Stock Exchange, strengthening its standing as a top-tier participant and its appeal as an issuer in the international capital markets.

The transaction enjoyed strong investor support from the outset, with more than 40 prominent investors expressing interest. The positive feedback received on Wednesday paved the way for the announcement the following day. Within just two hours of launch, investors placed orders totaling EUR 2 billion; the order book peaked at around EUR 3.25 billion once orders from US investors started to come in. Final orders exceeded EUR 2.65 billion, representing a 5.3x oversubscription versus the amount BT intended to raise.

More than 180 high-quality investors – a record for Banca Transilvania’s bond issues – from the European Union, the United Kingdom, the United States and other markets underpinned the excellent outcome of the transaction, both in terms of market reception and pricing. Given the strong demand from a broad investor base — including asset managers, supranationals, sovereign wealth funds and others — Banca Transilvania was able to cut the coupon from 7.625% (initial guidance) to a final yield of 7.125%, a significant 50 basis point tightening.

The final pricing of the AT1s reflects a spread of just 200 basis points over the most recent senior unsecured transaction from September 2024, a differential below the average for Western European banks.    

The AT1 bond issue strengthens our solid capital position while enabling a more diversified and optimized capital structure, for the benefit of our shareholders and clients. With this equity-like issuance, we are fully prepared to continue our growth, and I am particularly pleased to see the strong interest from international markets. This shows that Banca Transilvania and Romania remain an attractive investment opportunity despite heightened economic uncertainty. The vote of confidence from our investors motivates us, as a team, to be even more determined to meet our growth targets and continue supporting companies and individuals.

Ömer Tetik
Chief Executive Officer
Banca Transilvania

The issuance comprised Additional Tier 1 capital securities and contributes to meeting Banca Transilvania’s robust capital objectives, in line with the bank’s capital planning strategy. The bonds are euro-denominated, with a first call date on November 27, 2030. The minimum denomination is EUR 200,000. The coupon is 7.125%, reset every five years, with the first reset date on May 27, 2031.

The bonds are expected to be issued on November 27, 2025, on Euronext, the Dublin Stock Exchange, and will have ISIN: XS 3239211132. The final prospectus, once approved, will be available on www.euronext.com/en/markets/dublin and on Banca Transilvania’s website.

The bond sale was coordinated by Bank of America Securities Europe SA, BT Capital Partners S.A., J.P. Morgan SE and Morgan Stanley Europe SE. Legal counsel were Filip & Company, Freshfields Bruckhaus Deringer, Clifford Chance Badea and Clifford Chance, and the auditor was Deloitte Audit.

EUR 3 billion, the amount raised by BT through bond issues

The new bond issue brings the total value of the 6 bond transactions launched by Banca Transilvania since 2023 to nearly EUR 3 billion (equivalent). With the exception of the lei-denominated issue and the subordinated bond placement, all other bonds are listed on Euronext Dublin. This has enabled the bank to reach a broader and more diversified investor base, promoting BT’s story, financial performance and growth potential internationally, alongside the Romanian economy.