Moscow-based International Investment Bank (IIB) said on October 12 it has successfully closed the order book for a new bond issue on the Bucharest Stock Exchange.

The issue, structured in two tranches, in the Romanian leu (RON) and euro, is the fourth one in a row for the IIB and the largest one in terms of volume on the Romanian market.

The volume of the RON tranche amounted to RON300mn, while the volume of the euro-denominated tranche amounted to €80mn. The maturity of both tranches is three years. 

The offered instruments met with significant investor interest, the multilateral development bank said in a statement.

While the RON tranche was met with interest mainly from the local investor base, predominantly from asset managers, the euro tranche had a very good geographical distribution, with orders from offshore investors contributed to around 60% of the total book, the bank said in a statement.

High demand for the IIB’s bonds was ensured through a successful roadshow in the period from October 2 to October 5. 

“This year’s rating upgrades from Standard & Poor’s and Moody’s, in the context of the IIB’s continuously improving diversification of lending and funding as well as the treasury asset quality, were materialised in tighter spreads on both tranches compared with the IIB’s issuance last year,” Nikolay Kosov, chairman of the IIB management board, said.

The IIB is a multilateral development institution founded in 1970 and reformed in 2012. Its current nine members/shareholders are Bulgaria, Cuba, the Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam, all participating through intergovernmental agreements. In April, 2015, the IIB opened its first European regional office in Bratislava.