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Monday, November 19, 2018 
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The fourth bonds issue of International Investment Bank starts trading on Bucharest Stock Exchange

10/22/2018

  • Nikolay Kosov, IIB: This year rating upgrades from Standard & Poor’s and Moody’s were materialized in tighter spreads for both tranches comparing with IIB’s last year transaction
  • Adrian Tanase, BVB: The Romanian capital market reconfirms its high level of attractiveness and it is gratifying that the increased interest reported last year on the bonds segment continues in 2018. IIB is an example of how to constantly capitalize on the potential of the Romanian market, where it has issued corporate bonds for four years in a row

 

A new series of corporate bonds issued by International Investment Bank (IIB) on the Romanian capital market is admitted to trading on the main market of the Bucharest Stock Exchange (BVB). The issue is structured in two tranches, both with 3 years maturity: one in Romanian currency, which amounts to RON 300 million and pays an interest rate of ROBOR 3M + 1.4% and the other one in the foreign currency of EUR 80 million with an interest rate of 1.5026% per annum.

"This year rating upgrades from Standard & Poor’s and Moody’s, in the context of IIB’s continuously improved diversification of the lending and funding and quality of treasury assets, was materialized in tighter spreads for both tranches comparing with IIB’s last year transaction", commented Nikolay Kosov, the Chairperson of IIB.

"IIB successfully reduced the spread for the RON tranche by 10 bps and for the EUR tranche by 25 bps comparing with last year’s deal, concluding the new transaction at ROBOR 3M + 140 bps for RON tranche and Mid-swaps +140 bps for EUR tranche", mentioned the Deputy Chairperson of the IIB, Jozef Kollar, responsible for funding.

The value of IIB bonds issues grew from one year to another, starting from RON 111 million in 2015, to RON 300 million in 2016, to the equivalent of EUR 125 million (EUR 60 million + RON 300 million) last year, to about EUR 145 million (RON 300 million + EUR 80 million).

"The Romanian capital market reconfirms its high level of attractiveness and it is gratifying that the increased interest reported last year on the bonds segment continues in 2018. IIB is an example of how to constantly capitalize on the potential of the Romanian market, where it has issued corporate bonds for four years in a row. Now, we are talking about two offerings of bonds issued by the same entity, in lei and euros, at the same time, using the Romanian capital market infrastructure, which allows for trading and settlement directly in euros," said Adrian Tanase, CEO of BVB.

The issue was intermediated by BT Capital Partners, the investment banking and capital markets unit of the Financial Group Banca Transilvania as Lead Manager, jointly with BRD - Groupe Societe Generale and ING Bank.

"We are honored by the trust that International Investment Bank has in BT Capital Partners. We are glad we have succeeded in turning an initiative into tradition, innovating by adding this year the option of reopening a corporate bond issue, which is a first for Romania," stated Paul Prodan, Chairman of the Administration Council at BT Capital Partners.  

"We are pleased to have contributed to the success of this IIB bonds issue and, as a consequence, to the financing of projects in the Romanian economy," said Irina Neacsu, Corporate Finance Executive Director at BRD Groupe Societe Generale.

"This successful IIB bonds issue also marks the return of ING to the local capital market. Thus, we can actively contribute to the development of the non-bank financing on the Romanian market in order to diversify the financing sources of companies and financial institutions. We aim to stimulate the interest of both issuers and investors in such transactions in the future, through the efforts of our local team and the international network of ING. We congratulate the IIB team for this achievement," said Mihaela Bitu, Head of Wholesale Banking ING Bank Romania.

The funds obtained by IIB will be aimed at financing the existing loan portfolio and the new loans given to the EU member states, respectively at refinancing of debts.