CEC Bank is listing today, 20 December, on the Regulated Market of the Bucharest Stock Exchange (BVB) an issue of bonds amounting to EUR 300 million, senior non-preferred unsecured bonds, eligible in the light of the MREL requirements, with an annual interest of 5.625% , with maturity in 2029. The bonds were rated BB by Fitch.
The issue of bonds in EUR, under the ticker symbol CECRO29E is part of the MTN programme of CEC Bank, amounting to EUR 1.5 billion, and has been listed with the Luxembourg Stock Exchange since November this year.
CEC Bank mandated Erste Group Bank AG and ING Bank NV as Joint Bookrunners and Co-Arrangers of the bond issue, while BT Capital Partners acted as Co-Manager and intermediary of the bonds listing at BVB. Dentons acted as legal advisor to CEC Bank, while Erste Group Bank AG and ING Bank NV were advised by Clifford Chance, through their offices in Bucharest and Frankfurt.
“We are grateful to all our partners who made this transaction a success and particularly appreciate investors’ confidence in the future journey of CEC Bank, which we desire to permanently reconfirm the role assumed from the beginning in the economic development of Romania. Our strategy in the coming period remains ambitious, focused on organic growth and improved profitability, adapting our business model to promptly and efficiently meet the needs of our clients. Under these circumstances, CEC Bank’s presence on the capital markets will be recurring in the next years, as they will play an increasingly important role in our funding strategy.“, stated Ionut Lianu, Chief Balance Sheet Officer of CEC Bank.
“Each listing of bond issues with the Bucharest Stock Exchange by a financial-banking institution re-confirms the partnership between the banking system and the local capital market. CEC Bank, a landmark institution in the Romanian financial-banking sector, with a 160 year-long history, is listing today on the stock exchange their 4th bond issue and confirms the commitment to transform CEC Bank into an attractive bank for investors, applying the corporate governance principles as stated at the time of their first bond listings in 2023.”, stated Radu Hanga, President of the Bucharest Stock Exchange.
“Today’s listing of the bond issue by CEC Bank is the first such operation initiated by a financial institution on the stock exchange this year. CEC Bank is our partner in developing the local capital market, by their decision to list their recent bond issues on the local stock exchange and also, as of this year, the BVB Arena edition of our entrepreneur program, has been «Powered by» CEC Bank. I congratulate you for the high level of interest that international and local investors have shown in regard to this new bond issue and we wish to see further bond issues of CEC Bank listed on the stock exchange.”, stated Adrian Tanase, CEO of the Bucharest Stock Exchange.
“The success of an international bond issuance is defined by many technical factors: oversubscription level, the final price and its evolution in the secondary market, as well as the distribution of investors. Additionally, the economic context that influences risk perception at country, sector and issuer level plays a key role in determining the distance between results and expectations. In these conditions, we are attending a successful listing from a landmark institution for both the banking history and future of Romania, which is carving its own path in capital markets and delivers attractive returns to investors.”, said Daniela Secara, CEO at BT Capital Partners.
The bond issue is ensuring CEC Bank compliance with the MREL regulatory requirements and supports the overall growth of the Bank, thus confirming CEC Bank as a regular issuer on the senior bond international markets. The bonds that CEC Bank issued in 2022 and 2023,CECRO25 and CECRO25E, worth over LEI 650 million and CECRO28E, worth EURO 281,9 million are also listed at BVB.
About CEC Bank
CEC Bank is the financial institution having the longest tradition in Romania. Founded in 1864, CEC Bank has now the most extensive national network, including over 1,000 local branches and units and owing assets of over LEI 93 billion at the end of the first half of 2024.
CEC Bank is a top-ranking universal bank on the Romanian market and offers the whole range of products and services to natural persons, SMEs and large corporations, through multiple distribution channels: banking units, ATM networks, internet banking, mobile banking and the virtual CEC_IN store – where banking products and services can be accessed 100% online.
More details on the products and services offered by CEC Bank can be obtained at any unit of the Bank, by calling free of charge the Customer Support Service number 0.800.800.848 or by accessing www.cec.ro.
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