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Raiffeisenbank (Bulgaria) EAD launches largest unsecured bond issued by a Bulgarian bank so far with RZB and ING Bank and the Joint Lead Managers
03 November 2006
Raiffeisenbank (Bulgaria) EAD has launched the largest unsecured bond ever issued by a Bulgarian bank. The 3-year-FRN (Floating Rate Note), totaling BGN100mn, bears a coupon linked to the 3M SOFIBOR plus 50bp. The maturity date is 30 October 2009.
The Joint Lead Managers and underwriters are ING Bank (Sofia) and Raiffeisen Zentralbank Österreich AG (RZB). Lead Underwriter is the Bulgarian Post Bank.
Subject to the approval from the Bulgarian Financial Supervision Commission, the bond will be offered for public trading on the Bulgarian Stock Exchange – Sofia AD.
Momtchil Andreev, CEO of Raiffeisebank (Bulgaria) EAD commented: “Our first bond, totalling USD32.1mn and issued in 2003, was favourably accepted by investors, as is our second one. Just six weeks ago, Raiffeisenbank, together with RZB, sole-Lead-managed a pioneering deal for the European Investment Bank (EIB) which was their first ever international Floating Rate Note denominated in Bulgarian Leva. This leaves no doubt that Raiffeisen belongs to the first names in the Bulgarian capital market.”
“Raiffeisenbank has grown significantly faster than the Bulgarian banking sector for more than a decade and the capital markets reward earnings quality and financial strength”, says Patrick Butler, RZB Board Member responsible for Treasury/Investment Banking and Financial Institutions & Sovereigns. “We’re delighted to Lead-manage this landmark deal for our Bulgarian colleagues”.
The bond was privately placed with institutional and corporate investors with a distribution as follows: banks – 89.25%, non-bank financial institutions – 3.25%, insurance companies and pension funds – 3.50%, corporate clients – 4.00%.
