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The EBRD participated in BT’s first international bond under its Euro Medium-Term Note programme
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First EBRD investment in international issuance of a bail-in-able Eurobond by a Romanian bank
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Investment to support the country’s green agenda and the resilience of Romania’s largest bank
The European Bank for Reconstruction and Development (EBRD) supported the first international bond issued by Banca Transilvania (BT) by investing €90 million and acting as an anchor investor in a €500 million 4NC3 senior non-preferred bond issuance. This is the first bail-in-able Eurobond issuance under BT’s current Euro Medium-Term Note (EMTN) programme, with bonds set to be listed on the Euronext Dublin Stock Exchange.
The investment will strengthen BT’s long-term resilience and compliance with the minimum requirement for own funds and eligible liabilities (MREL). It will boost capital market development in the country by facilitating local issuers’ access to international investors.
It will also support the green economy agenda of both the client and the country as a whole. BT has agreed to deploy 150 per cent of the proceeds from the EBRD’s participation towards financing green projects in line with the EBRD’s Green Economy Transition (GET) eligibility criteria.
Headquartered in Cluj-Napoca, BT is listed on the Bucharest Stock Exchange and is the largest bank in Romania. It is a longstanding partner of the EBRD, which is currently the bank’s second-largest direct shareholder. BT’s core activities are corporate and retail banking.
The EBRD is a long-term investor in Romania, having deployed more than €10 billion in the country to date, with a current portfolio of €2.5 billion and 2022 investments of close to €710 million. The EBRD is owned and governed by more than 70 countries, including Romania and countries in the European Union.