Wednesday, March 28, 2007

Romania: BCR bonds to be sold on stock market

28 March 2007

Bonds issued by the Romanian Commercial Bank in November 2006 worth 242 million lei due on 28 November 2009 will be sold at Bucharest Stock Exchange (BVB) on Thursday, BVB informs.

BCR bonds will be sold in the Credit title sector in the second category of corporate bonds with the symbol BCR09. In November 2006 BCR issued 2,428,278 bonds with a nominal value of 100 lei. The interest rate will be paid on a semester basis and the interest rate is 7.25%.

The public sale offer for BCR bond sale was between 8-21 November. The overall value of the issue was 200 million lei, with the possibility of going up to 575 million lei. The bond issue was carried out through BCR Securities brokerage house and of BCR units. BCR attracted 242.8 million lei (69.181 million euros), according to data communicated by the bank. The bank announced it intended to use the money attracted through this issue for the increase of the amounts offered as credit both to the population and companies, according to the shareholders’ decision.

The BCR bond issue was over subscribed in a proportion of 121.4% and of the 2428 million bonds 98.63% were subscribed by juridical persons while 1.3% were subscribed by natural persons. More than half (56.9%) of the subscription volume was achieved by Romanian and foreign banks, a third (32.9%) by insurance companies and 5.6% by investment funds. Two thirds (66.46%) of bonds were subscribed by non-resident investors. The bond issue was quoted with A minus by Fitch Ratings and with BBB minus by Standard & Poor’s.

In 2005 BCR issued Euro bonds which attracted 500 million euros with an annual interest rate of 3.75%. The BCR issue was intermediated by ABN Amro and BNP Paribas and benefited from good launch qualifications from international rating agencies : BB – from Standard& Poor’s and BB from Fitch. BCR Euro bonds of the senior notes type have a three year maturation, an issue profitability of 4% annually and a fix annual coupon rate of 3.75%.

In 2005 BCR also launched two successive union loans in the international market for over 620 million dollars – the forst in March for 200 million dollars, the second in August of over 400 million dollars, of which it paid back the first loan. BCR also launched 26 issues of municipal bonds and five corporate bonds at BVB.

Source: ACT Media News Agency

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