Patria Bank listed on Tuesday, December 15, 2020, on Bucharest Stock Exchange (BVB) its second issue of subordinated bonds, through which it attracted EUR 8.2mn from investors. The bonds were listed on the BVB’s Regulated Market.
This is the second round of financing carried out by the credit institution on the capital market, after the one in 2019. Thus, the value of the amounts attracted by the bank through the capital market in the last two years reached EUR 13.2mn.
“The two bond issues successfully concluded by Patria Bank are an additional proof that the capital market and the banking system are complementary in supporting the Romanian economy. Almost a third of the banks in the Romanian banking sector are present on the Bucharest Stock Exchange, either through issues of shares or with bonds, which makes us happy because it is an undeniable proof of the cooperation between the two financial sectors. Only in the last two years, there have been more than 30 rounds of financing at BVB, with a total value of over 2 billion euros. This money was attracted by banks and private companies, even by the Ministry of Public Finance, and there are many more companies preparing to come to Bucharest Stock Exchange”, said Radu Hanga, Bucharest Stock Exchange Chairman of the Board.
The issue comprises 16,374 PBK28E bonds, with a fixed interest rate of 6.5% p.a., payable on a half-yearly basis, and a maturity of eight years. The bonds have a nominal value of EU 500/ bond. The bonds are subordinated, unconditional, unsecured and non-convertible and have been issued to strengthen the bank’s capital base.
“Patria Bank marks the successful closing of a new bond issue by listing them on the Stock Exchange today. The significance of this new issue is much broader for us: in a 2020 that has brought many challenges, the fact that we have the confidence of investors is a positive vote for the direction we have in Patria Bank. Also, the newly granted loans in the first 9 months of the year, amounting to over 603 million lei, confirm the organization’s ability to adapt to the stated and assumed purpose of contributing to supporting Romanian entrepreneurship and the financial well-being of our clients, individuals and companies”, said Daniela Iliescu, Patria Bank CEO.
The bonds are subordinated in order to be registered in the Level 2 Equity of Patria Bank. The strengthening of the capital base allows the bank to support and implement its strategy of organic growth of lending activity in compliance with the prudential solvency requirements.
The bonds were sold by Patria Bank through an offer held between September 28 and 30 and carried out by the brokerage firm TradeVille. The minimum subscription in the private bond issuance placement was EUR 25,000. Starting Tuesday, December 15, Patria Bank bonds can be traded on the stock exchange by any natural or legal person.
”TradeVille’s expertise in obtaining financing for Romanian companies and the accessible and friendly online subscription technology have fully contributed to the success of the second private corporate bond placement that we intermediated for Patria Bank. We are happy to be involved in the development of a bank that supports a new generation of entrepreneurs and businesses essential for Romania’s future. And in this way, we are taking another step to transform the Bucharest Stock Exchange into an increasingly familiar place and a natural destination not only for investors, but also for entrepreneurs and companies”, said Mihaela Biciu, TradeVille CEO.
“The success of the new round of financing carried out by Patria Bank is a reconfirmation of the very useful partnership between the bank and TradeVille for both the credit institution and the capital market. The money attracted by Patria Bank from investors increases the bank’s capital base, thus increasing its lending capacity. Money are in the market, both from individual investors and from institutional investors, and can be accessed both directly by companies and by credit institutions that attract necessary capital from the stock market and subsequently inject money into the economy, by lending, thus proving that the stock exchange is an efficient financing channel”, said Adrian Tanase, Bucharest Stock Exchange CEO.
Patria Bank is listed on the Bucharest Stock Exchange, the bank’s shares being traded with the PBK ticker.
The bank’s indirect majority shareholder is the Emerging Europe Accession Fund (EEAF), a private equity fund whose main investors are the EBRD (European Bank for Reconstruction and Development), the EIF (European Investment Fund, part of the European Investment Bank Group), DEG (Development Bank, part of the KfW banking group) and BSTDB (Black Sea Trade and Development Bank).