Filip & Company law firm has provided legal assistance to Banca Transilvania in relation to the launch and execution of a EUR 500 million subordinated bond issue on the international capital markets, the bank’s first issue of this kind on the international financial markets.
The transaction attracted significant interest from investors, generating a book of orders totalling nearly EUR 2 billion. Over 100 institutional investors from 30 countries participated in the issue, with demand coming from a diverse investor base, including investment funds, pension funds, sovereign wealth funds, insurance companies, banks and supranational institutions.
The bonds had a 6.216% yield and a 6.122%fixed coupon payable half-yearly; they mature in 2037 and may be redeemed as early as 2032. The issue is due to be admitted to trading on Euronext Dublin and forms part of Banca Transilvania’s strategy to diversify and optimise its base of own funds and eligible liabilities.
“This is a landmark transaction for Banca Transilvania and also a significant milestone for the local market. The fact that the bank’s first international issue of subordinated bonds attracted orders totalling nearly 2 billion euros from investors in 30 countries speaks highly of the trust that BT has built up over time on international markets. It is also significant that this result comes at a time when investors are being more selective, which makes the deal all the more noteworthy. For the Romanian market, such transactions matter because they broaden the investor base, set benchmarks and make subsequent transactions easier to structure. We are delighted to have once again worked alongside the Banca Transilvania team and thank them for their trust and excellent collaboration”, said Alexandru Bîrsan, managing partner of Filip & Company.
The bond sale was led by the investment banks Goldman Sachs Bank Europe SE, ING Bank N.V., J.P. Morgan SE, Citigroup Global Markets Europe AG and BT Capital Partners. BT Capital Partners, acting as an intermediary, managed demand from investors in the local market and from international financial institutions.
The Filip & Company team was led by Alexandru Bîrsan (managing partner) and included Anca Bădescu (senior associate), Olga Niță (partner) and Bianca Gheorghe (associate).
Over the last years, Filip & Company has been successfully involved in many benchmark transactions on the Romanian capital market, whether they were share or bond offers, as well as in all the bond issues of the Romanian State on the external markets. The Filip & Company lawyers are ranked first in the most prestigious international directories - Chambers and Partners, b and IFLR in the Capital Markets practice, both as a team as well as individually, and Alexandru Bîrsan is included in the Legal 500’s “Hall of fame” for this practice area.
Filip & Company
Filip & Company is one of the leading law firms in Romania, providing top-quality assistance in all relevant areas of business law for companies operating in—or considering—Romania. Specialised in complex projects that require an innovative approach, Filip & Company's lawyers have significant experience in diverse areas, such as infrastructure and concessions, mergers and acquisitions, energy, corporate, real estate, competition law, finance, and capital markets, as well as labour law, data protection, and consumer or environmental protection. The firm also provides legal assistance and representation in disputes and arbitrations with significant implications for their clients’ businesses. Please visit www.filipandcompany.com to find out more about Filip & Company’s expertise areas and team.
