UniCredit Tiriac Bank gets green light for RON bond issue

Newsroom 13/06/2013 | 14:41

The Financial Supervisory Authority (FSA) has approved the initial selling of 5-year maturity corporate bonds issued by UniCredit Tiriac Bank, with a coupon of minimum 6 percent.

UniCredit Tiriac bank will start with 50,000 bonds, each amounting to RON 10,000 (EUR 2236) and may add another 20,000 bonds if the offer is oversubscribed. The lender hopes to raise around RON 500 million (EUR 112 million) from the bond sale that runs for a week starting June 14. The issuance gains will be used for general funding purposes of the bank.

Rasvan Radu, CEO and executive president of UniCredit Tiriac Bank, said: “We are firmly confident in the success of our bond issuance, considering the early discussions we have had with institutional investors both local and international and their positive reactions.”

“This bond issuance is an important element in our long term strategy to diversify our financing sources, and the terms of the issuance were carefully selected after a detailed monitoring and projection of the market conditions.”

The lender will declare the sale a success if at least 70 percent of the bonds are subscribed.