Romania’s Banca Transilvania [BSE:TLV] said that it has raised 700 million euro ($780.5 million) through its second environmental, social and governance (ESG) bond issue, which was more than three times oversubscribed, according to See News.
The bonds, which will mature in 2030, attracted orders of over 2.5 billion euro and was oversubscribed within the first hour, leading to a favourable final coupon rate of 5.125%, 40 basis points lower than initially expected, Banca Transilvania said in statement filed with the Bucharest Stock Exchange.
Nearly 170 institutional investors including investment funds, pension funds, commercial banks, insurance companies and other companies from 28 countries subscribed to the offer, with 95% of the issue subscribed by international investors.
The ESG bond placement, which is listed on the Dublin Stock Exchange, will help finance sustainable projects that support SMEs in underdeveloped regions of Romania and improve access to healthcare and education, as well as initiatives that support the green transition.
The bond issue was coordinated by arrangers J.P. Morgan, Morgan Stanley, Nomura and ING Bank, which also acted as the sole ESG advisor. BT Capital Partners, Banca Transilvania Group’s brokerage arm, acted as co-manager.
The lender placed its first ESG bond issue last year, raising 500 million euro.
In the first half of 2024, Banca Transilvania’s net profit jumped by 42.6% year-on-year to 1.81 billion lei ($405.6 million/363.8 million euro).
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