Banca Transilvania has attracted capital from investors in its first ESG bond issue

November 2023 — Banca Transilvania has attracted €500m (US$539m) through a bond issue on November 29, with investors placing orders amounting to over €1,650m (US$1,779m). 90% of the total issue was subscribed by international investors from 21 countries. The issue was oversubscribed in just a few hours, allowing the interest rate to fall from 7.75% at the start of the order placement to 7.25% at the end. It is the first bond issue with an ESG label, with a social component (minimum 50%) and a green element.

Banca Transilvania is Romania’s largest bank in terms of assets, with a market share of approximately 20%, over 3.7 million customers and a network of more than 500 branches. It offers a wide range of banking products and services to individuals, businesses and corporations, including current and deposit accounts, credit and debit cards, loans, investment products, insurance products, payment and money transfer services, cash management services, trade finance services and treasury services.

Banca Transilvania is committed to supporting the Romanian economy and to helping its customers grow and succeed. It offers a variety of programs and services to support small and medium-sized enterprises (SMEs), including loans, advisory services, training programs and networking events. BT was the first bank in Romania to be listed on the Bucharest Stock Exchange (BSE) in 1997. It is one of two Romanian companies that helped Romania transition from frontier market to emerging market status. In 2020, BT was included in the FTSE Global Equities Index Series.

Our role in the transaction

Oaklins’ team in Romania acted as co-manager of the issuance.