EBRD subscribes 25% of Raiffeisen Romania's EUR 50mn bond

By bne IntelliNews August 2, 2013

The EBRD has subscribed RON 56.3mn, or one quarter, of the RON 225mn [EUR 50mn] local currency senior unsecured bond issued by Raiffeisen Bank Romania, the EBRD announced in a press release.

The bond issue was aimed at providing more resources to the Romanian bank for “general funding needs”, including loan expansion, the EBRD explained. It said in July it has launched a EUR 150mn programme aimed at backing bond issues of Romanian financial institutions. The EBRD has also subscribed 20% of UniCredit Tiriac's RON 550mn [EUR 121mn] five-year unsecured issue earlier this year.

Romanian banks started issuing bonds on the local market – but this is hardly due to their need to finance credit expansion [stock of loans has stagnated for years and started shrinking recently]. The pattern is rather aimed at replacing the financing provided by parent financial groups that are withdrawing their resources. BIS data indicated record outflows of USD 2bn from the Romanian banks, operated by BIS-reporting banks.

Raiffeisen Bank Romania launched on July 25 the three-year unguaranteed bond denominated in local currency at a yield of 5.5%. It was the third bond issue placed by a Romanian bank this year after Banca Transilvania issued a seven-year EUR 30mn convertible bond at EURIBOR+6.25% in May and UniCredit Tiriac Bank issued a five-year RON 550mn [EUR 123mn] unguaranteed bond at 6.4% in June.

Related Articles

Romania's Transgaz to open branch in Moldova to speed up pipeline construction

Romanian natural gas transport company Transgaz will soon open an office in Chisinau to speed up the construction of Ungheni-Chisinau pipeline that will bring Romanian gas to Moldova’s main ... more

Cummins reportedly to relocate production from UK to Romania after Brexit

Global engine and generators manufacturer Cummins plans to relocate production from the UK to Craiova, in southwest Romania, after Brexit, Craiova mayor ... more

Nato boosts Black Sea presence with new Romanian military force

Nato launched a new multinational force in Craiova, southern Romania, on October 9, as part of its Forward presence in the southeastern alliance states.  The move is aimed at countering ... more

Dismiss