Local lender UniCredit Bank has attracted RON 610 million (EUR 133.7 million) from the sale of corporate bonds.

The bank aimed to raise RON 500 million (EUR 109.6 million) by selling bonds to qualified investors, but the offer has been oversubscribed. Over 30 local and international institutional investors, including the European Bank for Reconstruction and Development (EBRD) bought UniCredit bonds.

The bond issuance took place between July 17-21. The bonds were offered at a price of RON 10,000 (EUR 2,200) each. The bonds have maturities of three, five and seven years.

For the first class, with a maturing date in 2020, the interest rate will range between 0.6%-0.7% over the six-month ROBOR rate. The ROBOR (Romanian Interbank Offer Rate) is the average interest rate for RON-denominated loans in the interbank market.

For the 2022 class, the interest amounts to 0.8%-0.9% over the 6-month ROBOR. The bonds maturing in 2024 will have an interest rate of 1%-1.1% over the 6-month ROBOR.

The bond issue is part of a wider program aimed at diversifying the bank’s financing sources. The lender also issued bonds on the local market in 2013.

The current bond issue was managed by brokerage firm IEBA Trust and Clifford Chance Badea provided the legal assistance.

UniCredit group boosts profit in Q1 in Romania

editor@romania-insider.com