Banca Comercială Română (BCR, part of Erste Bank Group) raised EUR 500 million through its second Eurobond issue, strengthening its access to international capital markets. The issuance follows a local bond sale earlier this month and forms part of the bank’s broader funding strategy.
BCR stated that the transaction secured “one of the most competitive financing margins obtained in recent years by a Romanian bank for an MREL-eligible issue”, attributing the result to strong investor appetite and confidence in the bank’s financial position.
More than 130 institutional investors participated, with demand exceeding EUR 2 billion at the close of the order book. The high level of interest enabled BCR to set the final spread at 35bps below the yield on euro-denominated government bonds with a five-year maturity.
The issue was arranged by Bank of America, BNP Paribas, Citi, Erste Group, and JP Morgan.
The bonds will be listed initially on the Vienna Stock Exchange and later on the Bucharest Stock Exchange. The notes carry a six-year maturity and include an early redemption option after five years.
BCR said the Eurobond forms part of its plan to extend and complete its yield curve through periodic issuances covering missing maturity intervals. The bank noted that this approach supports transparent price formation in the market while consolidating its maturity structure and ensuring efficient long-term financing costs.
The bonds are expected to receive Baa2 from Moody’s and BBB- from Fitch, consistent with the ratings assigned under the bank’s existing programme.
With this Eurobond, BCR has raised the equivalent of RON 3.625 billion (EUR 732 million) across two issues in November: RON 1.125 billion from the domestic sale on November 11 and roughly RON 2.5 billion from the November 25 Eurobond.
Since launching its bond programme, BCR has secured more than RON 12.3 billion (EUR 2.48 billion) in total financing aimed at supporting capital-market development and strengthening links between Romanian issuers and international investors.
iulian@romania-insider.com
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