Romanian bank BCR, part of Erste Bank Group, issued EUR 700 mln worth of senior non-preferred Eurobonds with a maturity of 4 years and the possibility of early redemption after 3 years to be listed on the Vienna and Bucharest Stock Exchange.

The bond qualifies both as a "green" bond, meaning that the money thus raised will be directed towards renewable energy projects, green mortgages, and green buildings, and also as eligible liability under MREL requirements.

The book-building process has shown strong investor interest, the bank says in the press statement released after the placement, arguing that in the first hours after opening, the orderbook reached over EUR 1 bln, rising to over EUR 1.9 bln at the close of the orderbook, in just a few hours. This allowed a coupon of 7.625%, significantly reduced from IPTs of 8.00%-8.25%.

The distribution was diversified, with over 155 investors and benefited from both foreign and local investors.

Over 60% of the issue was allocated to institutional investors interested in green assets, with notable participation from the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).

BCR's new bond issue is a first in the Romanian financial-banking market, being the largest corporate bond issuance in Romania. It is also BCR's eighth bond issuance and supports the bank's efforts in developing the Romanian capital market, as well as the professionalism of the team that coordinated and planned this launch.

iulian@romania-insider.com

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