New issue of IIB bonds admitted to trading in Romania
The new issue of the International Investment Bank (IIB) bonds, denominated in euros and in lei, has been admitted to trading on the Bucharest Stock Exchange. This was already fourth bond placement of IIB in Romania and second one with EUR-denominated tranche.
On October 22nd, 2018, the symbolic opening ceremony of the trading session for IIB’s securities was held at the stock exchange with the participation of Deputy Chairman of the IIB Board, Mr. Jozef Kollár, State Secretary of the Ministry of Public Finance and Head of the Romanian Delegation in the IIB Council, Mr. Attila Gyorgy, CEO of BT Capital Partners, Paul Prodan, CEO of the Bucharest Stock Exchange, Adrian Tanase, representatives of ING and BRD Societe Generale, high-level representatives of the Financial Supervisory Authority and the the Central Depository, which have supported the placement.
This issue is structured in two tranches, denominated in lei and in euros with a maturity of 3 years. The tranche in the Romanian national currency amounts to RON 300 million (about EUR 65 million), the tranche in EUR amounts to 80 million. The rate in RON is bound to the inter-bank lending rate in Romania and equal to ROBOR 3M + 1.40% per annum, the rate in EUR amounts 1,5026% per annum.
“In my personal opinion, IIB is sort of a pioneer on the Romanian Market or trend setter, if you want. Last year we had issued the first EUR-denominated bond on this market and this year we had repeated it successfully. This year’s orderbook looked well diversified with more than 30 investors from nine countries. We achieved the lowest spreads ever on the Romanian market with the final interest rates of ROBOR 3M+140bps and MS+140 bps for the RON and respectively EUR tranche successfully reducing the spreads by 10 bps for RON and by 25bps for EUR, as compared with the last year’s deal. Continuous work of IIB on the Romanian debt capital market reconfirms Bank’s goal of its Member States’ financial markets’ development.” said Mr. Jozef Kollar during the opening ceremony.