Filip & Company law firm provided legal assistance to Banca Transilvania in relation to the launch and execution of a EUR 1 billion bond issue on international capital markets, the largest transaction of its kind ever completed in Central and Eastern Europe.
The issue attracted very strong investor interest, being oversubscribed by nearly four times, with a book-building total of approximately EUR 3.8 billion, confirming the international markets’ strong confidence in Banca Transilvania’s performance and the growth prospects of the Romanian economy.
The bonds have an investment-grade rating (BBB-) from Fitch, which is a first for this type of instrument issued by the bank; they mature in 2032 and will be listed on Euronext Dublin. The transaction has attracted over 200 institutional investors from 32 countries, including investment funds, pension funds, financial institutions, and sovereign investors, thereby showing the diversity and quality of the investor base.
“This transaction clearly illustrates the current state of Romania’s capital market. The size of the deal, the level of investor interest, and the execution demonstrate that Banca Transilvania is already seen as a significant European issuer, and that the local market has reached a level of maturity that enables such results even in a volatile context. The result—including the reduction in financing costs—also shows that there is real appetite for Romania and for issuers that consistently deliver performance. Looking beyond the numbers, this is an important signal for the entire market, as such transactions raise standards and set benchmarks for future financings. We are pleased to have supported our client during such an important moment and thank them for their trust and excellent collaboration”, said Alexandru Bîrsan, managing partner at Filip & Company.
The transaction was led by investment banks Goldman Sachs Bank Europe SE, J.P. Morgan, Morgan Stanley, Nomura and BT Capital Partners.
The Filip & Company team was coordinated by Alexandru Bîrsan (managing partner) and included Olga Niță (partner), Anca Bădescu (senior associate), Bianca Gheorghe (associate) Georgiana Lazăr (associate) and Diana Drăgan (associate).