Banca Transilvania has successfully completed the largest AT1 bond issuance in Central and Eastern Europe

• Banca Transilvania attracted EUR 500 million in the international capital markets.
  
  
• It is the bank's debut perpetual NC5.5 Additional Tier 1 (AT1) issuance on the international financial markets and, in this sense, the first ever out of Romania.
  
  
• The bonds will be listed on the Euronext, Dublin Stock Exchange in November 2025.
  
  
• The bonds issue has been rated B1, by Moody's, reflecting BT’s strong credit fundamentals and effective risk management.
  
  

Banca Transilvania announces the successful execution of its first AT1 (Additional Tier 1) bonds issue on the Dublin Stock Exchange, strengthening its reputation as a leading and attractive participant in the international capital markets.

The issuance benefited from excellent investor sponsorship from the onset of the process, when over 40 prominent investors expressed their interest in participating in the transaction. The strong initial momentum and feedback provided during the course of Wednesday constituted very good premises to launch the transaction the next day. In only two hours after the announcement, investors provided orders amounting to EUR 2 billion in a book that peaked around EUR 3.25 billion, once interest from the US investors started to arrive. The final volume of orders amounted to above EUR 2.65 billion with an oversubscription of 5.3 times of the amount BT planned to raise.

More than 180 high-quality investors - a record in Banca Transilvania's bond issuances - from European Union, UK, US and other markets, supported the excellent outcome of Banca Transilvania’s issuance, both in terms of capital markets reception and pricing. Driven by the strong demand from a broad base of investors – including fund managers, supranational insttutions, sovereign wealth funds, and others, Banca Transilvania managed to reduce the coupon rate from the initially expected of 7.625% to 7.125% as final yield, a remarkable tightening of 50 basis points.

The final pricing of the AT1 bonds reflects only 200 basis points above the latest senior unsecured transaction in September 2024, a price differential that is below the average of its Western European peers.    

The AT1 bond issue complements our solid capital position, while allowing for a more diversified and optimal capital structure, to the benefit of our shareholders and customers. With this issuance of capital securities, we are fully equipped to continue our growth and I am particularly thrilled to see high interest from international markets. It means that Banca Transilvania and Romania continue to represent an attractive investment case, despite increased uncertainties across local economy. The vote of confidence coming from our investor base make our entire team even more committed to deliver growth expectations and to further sustain companies and retail clients.

Ömer Tetik
Chief Executive Officer
Banca Transilvania

The issue consisted of additional Tier 1 capital securities and contributes to delivering the robust capital targets of Banca Transilvania, in line with the capital planning. The bonds are denominated in EUR, have the option for early redemption from 27 November 2030, and a minimum subscription of EUR 200,000. The coupon offered is 7.125%, resetting every five years, with a first reset date on 27 May 2031.

The notes are expected to be issued on 27 November 2025, on the Euronext, Dublin Stock Exchange, and will have the following ISIN: XS 3239211132. The Final Prospectus, when approved, will be available on www.euronext.com/en/markets/dublin and on Banca Transilvania's website.

The bonds sale was coordinated by Bank of America Securities Europe SA, BT Capital Partners S.A., J.P. Morgan SE, Morgan Stanley Europe SE. The legal advisors were Filip & Company, Freshfields Bruckhaus Deringer, Clifford Chance Badea and Clifford Chance, and the financial auditor was Deloitte Audit. 

EUR 3 billion, the amount attracted by BT through bonds issues

The new bonds issue brings the value of the 6 bonds issues launched by Banca Transilvania since 2023 to almost EUR 3 billion (equivalent). Apart from the RON bonds issue and the subordinated bonds placement, all the other bonds are listed on Euronext Dublin. This has enabled the bank to reach a wider and diversified range of investors and to promote BT's story, its financial performance and growth potential together with the Romanian economy, internationally.