Romania's largest financial group by assets, Banca Transilvania, announced plans to finance its activity with separate bond issues that may sum up to EUR 1 bln over a ten-year period of time.

The bank's shareholders approved the multi-year program for the issuance of MREL-eligible corporate bonds denominated in EUR, RON or other currencies at the Extraordinary General Shareholders' Meeting held on October 18. The bonds are intended for institutional investors - local and international.

The bond issues, presented under the Framework Plan, will support the fulfilment of the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) and the financing of the economy and the population.

Banca Transilvania assures that it has a strong financial position and a robust and comfortable level of capitalization. Its third-quarter financial results will be released on November 11 2022.

The European standards require banks to ensure an optimal level of MREL- eligible funds at all times, BT explains. These cannot be made from customer deposits guaranteed by the Bank Deposit Guarantee Fund. The instruments will not be guaranteed and will not be convertible upon the investors' initiative. 

andrei@romania-insider.com

(Photo source: Banca Transilvania)