On October 4, Banca Comerciala Romana (BCR), part of Erste Bank group and the second largest credit institution in Romania by assets, issued and listed at the Bucharest Stock Exchange (BVB) a RON 334 mln (EUR 67 mln) bond with a maturity of six years.

The yield at issue accepted by BCR in a private placement to investors was set 110bp above the benchmark - namely, the interest rate for the Romanian state bonds of the same maturity (8.48% at this moment). This resulted in a 9.6% yield at issue.

"BCR has intensively used, in recent years, the capital market for financing, being an essential partner of the Stock Exchange in promoting the resources we have available for companies," said Adrian Tănase, general director of BVB, quoted by Profit.ro.

Among the investors there were Pillar II pension funds. It is most likely MREL financing, Ziarul Financiar daily said, explaining that BCR has RON 20 bln in excess deposits above the loan portfolio - namely RON 70 bln deposits and only RON 50.2 bln loans.

andrei@romania-insider.com

(Photo source: Gabriel Petrescu/Dreamstime.com)