ZAGREB (Croatia), June 30 (SeeNews) – Croatian bank Erste & Steiermarkische Bank announced on Wednesday that it had successfully issued on the international market its first senior privileged bond issue of 400 million euros ($ 475 million).
“With this transaction, Erste bank added its first international bond issue in euros to its existing debt issues on the domestic market. In this way, it became the first bank in Croatia, which successfully carried out its own bond issue in the international market, â€the bank said in a statement.
The bond matures in 2028 and has a call option six years after the date of issue. It bears an annual coupon of 0.75% and a yield to maturity of 0.835%.
More than 70 institutional investors participated in its subscription, including investors from the United Kingdom, Germany, Austria, Central and Eastern Europe, France, Switzerland and Benelux.
The co-agents of the issue were BofA Securities Europe SA, Erste Group Bank AG, Landesbank Baden-Württemberg and Société Générale.
The main objective of the issue is to meet the minimum regulatory requirements for own funds and eligible liabilities (MREL), which the bank must fully meet by January 1, 2024.
“Erste bank is the most active bond issuer among financial institutions in Croatia, as it is the bank’s sixth bond issue and the first on the international capital market,” said CFO Kresimir Baric in a press release. This follows a successful issuance earlier this year of a preferred € 45 million senior bond, which was the first of its kind in the local market under the MREL regulatory requirement, he said. added.
“In accordance with the bank’s financing strategy, through this bond issue, we have also diversified the sources of financing and we will use the funds raised by the issue for our core business, in order to strengthen the sustainable and successful commercial path. Erste bank on the local market, â€he added.
Earlier this month, the € 400 million bond issue was rated by Fitch Ratings’ ESB; BBB + / Stable.
Erste bank is part of the Austrian Erste group.
($ = 0.8416 euros)