Raiffeisen Bank Raises €600M via New Eurobond Issue

Raiffeisen  Bank has successfully placed a new issue of senior non-preferred eligible Eurobonds worth €600 million, strengthening its own funds and eligible liabilities (MREL) position, as well as its capacity to  finance the Romanian economy.   The issue was subscribed at a fixed coupon of 4.626% per annum for the first 5.4 years (January 2032)—with a maturity of 6.4 years (January 2033)—representing a spread of 1.5 percentage points above the euro mid-swap benchmark rate. This stands approximately 0.3 to 0.35 percentage points below the yield of similar-maturity Eurobonds issued by the Romanian state.   The transaction sets a new benchmark for  financing costs among Romanian credit institutions, achieving the most competitive spread obtained to date by a Romanian bank on international capital markets.   Amid an international backdrop marked by increased volatility and a local environment characterized by economic and political uncertainties, the transaction enjoyed significant investor interest, reflecting confidence in Raiffeisen Bank’s solid business model.   High investor demand was reflected in a peak order book exceeding €1.7 billion and a final order book surpassing €1.3 billion. The strong demand allowed for a 30-basis-point compression in the final spread compared to initial price guidance. More than 90 international institutional investors participated in the transaction, primarily asset managers, insurance companies, and pension funds from the United Kingdom, France, and the DACH region.   “We thank investors for their trust and interest in this transaction. The result confirms Raiffeisen Bank’s appeal among international institutional investors, while also demonstrating that investors continue to see solid opportunities in Romania and value the long-term development prospects of the local economy. As one of the most active financial institutions in the Romanian market, we take on the role of converting this trust into financing that supports sustainable growth in Romania,” said Alina Rus, Chief Financial Officer at Raiffeisen Bank Romania.   “With this issue, we cross the equivalent threshold of 10 billion lei raised through bonds on local and international capital markets over the past six years, bolstering Raiffeisen Bank’s ability to finance the Romanian economy and support our clients’ long-term projects. At the same time, through our consistent presence as an issuer, we have contributed to the development of the local capital market, supporting the expansion of the investor base and the diversification of available financing sources in the Romanian economy. The outcome of this transaction validates the benefits of a predictable presence on capital markets and the strong relationships we have built with institutional investors over time,” added Romulus Mircea, Director of Treasury at Raiffeisen Bank Romania.   The bonds were rated Baa2 by Moody’s—one notch above Romania’s sovereign credit rating (Baa3)—and will be counted toward the bank’s own funds and eligible liabilities. The transaction was joint lead managed by Bank of America, Natixis, Intesa Sanpaolo, and Raiffeisen Bank International as Joint Global Coordinators, with Raiffeisen Bank S.A. acting as Co-Manager. The bonds will be listed on the Luxembourg Stock Exchange.