Alpha Bank Romania announces the successful placement of its inaugural €200 million euro-denominated covered bond issue, the first ever from a Romanian bank. This marks a milestone for both Alpha Bank Romania and the Romanian Capital Markets.

The bond, which has a five year maturity and pays a floating rate coupon, is backed by prime Romanian residential mortgages and is rated (P) Baa2 by Moody’s. The transaction attracted strong investor interest from both local and international institutional investors, including the IFC and the EBRD.

The bond will be listed on both the Luxembourg and the Bucharest Stock Exchanges. “Covered bonds are modern financing tools that will contribute to the development of Romanian financial institutions and the capital market,” said Sergiu Oprescu, executive president of Alpha Bank.

The transaction was managed by Barclays Bank PLC acting as Lead Manager and Alpha Finance Romania as Co-Manager.