Romanian lender Unicredit Tiriac Bank raised some EUR 121 million (RON 550 million) from the bank’s first bond issuance, over the initial targeted amount of some EUR 113 million (RON 500 million).

The offer was completed on Friday (June 21), based on subscriptions of over 30 local and international institutional investors, including international funding institutions (EBRD and IFC), funds managed by the main asset management companies, pension funds, insurance companies, local and international banks, according to Unicredit.

The bank set the coupon at 6.35 percent per year and coupon payments will be made on June 15 and December 15 each year. The bonds are senior, unsecured, with a five-year maturity, denominated in dematerialized form. The issuance intermediary was SSIF Broker, while the legal advisory was assured by Badea Clifford Chance. The transaction will be completed on June 25 and settled on June 28, 2013.

"We plan to return to the market with new bond selling offers in the upcoming years, depending on the future opportunities. We want to continue to expand our activity on the Romanian market, based on diversified financing sources, which we plan to attract both locally and internationally, as well as resources from UniCredit Group," said Rasvan Radu, CEO Unicredit Tiriac Bank.

UniCredit Ţiriac Bank posted a net profit of EUR 13.7 million in the first quarter of 2013, up by 166 percent on the same period of 2012. The bank ended the first quarter with EUR 3.9 billion in loans, up 6.8 percent, while deposits were at EUR 2.7 billion, a growth of 9.2 percent.

The consolidated assets of UniCredit Tiriac Bank, UniCredit Leasing Corporation and UniCredit Consumer Financing were at EUR 6 billion, while the net profit of the group was of almost EUR 14 million, more than double the same period of last year.

Irina Popescu, irina.popescu@romania-insider.com