International Investment Bank drew EUR 65 M funding on Romanian capital market

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International Investment Bank (IIB), Moscow-based international organization, has attracted RON 300 million (around EUR 65 million) on Bucharest Stock Exchange (BVB) through a bond issue with a maturity of three years and a coupon of 3.4 percent per year, a press release informs.

This is the third bond issue in the European Union and IIB’s second investment in Romania, in RON. The issue was oversubscribed twice over, being brokered by BT Capital Partners. In 2015 the Bank issued bonds of RON 111 million, at coupon of 4.1 percent per year.

“Ever more often, international institutional investors choose IIB’s bonds as a trustworthy asset for diversifying their treasury portfolios and contributing to economic development”, Nikolay Kosov, Chairman of the IIB Board, commented on the issue. “Investing into IIB’s securities on the Bucharest Stock Exchange means investing into Romania’s future, as our Bank will use the proceeds for financing local projects.”

The new issue has attracted institutional investors including investment funds and pension funds, insurance companies and brokerage and other investors, not only in Romania but also in Germany, Austria, Croatia and the Czech Republic.

Banca Transilvania Group, represented by BT Capital Partners S.A., acted again as the organiser, together with Banca Comerciala Romana S.A. (ERSTE Group).

In October 2015, the IIB carried out its first bond placement in Romania in the amount of RON 111 million (around EUR 25 million), which became the largest bond issue among international financial institutions (IFIs) on the local market in the past six years. The issue received an award from the Romanian Stockbrokers’ Association for its contribution to the development of the Romanian bond market. The new IIB bond issue of RON 300 million has become the largest among IFIs on the Romanian market in the past 10 years, together with a placement by the European Investment Bank in 2007.

“The Bank continues to ramp up investments into the Romanian economy, regularly comes to the national capital market for funding and organises presentations for local companies. The total volume of signed loans of the Bank in the country since IIB’s reform in 2012 exceeds EUR 50 million, with a promising pipeline,” the international financial institution notes.

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