Finansbank's three-year bond offering was almost completely subscribed in less than one week out of the two weeks scheduled. The bank is considering raising the offering by a further 150bn ROL to a total of 500bn ROL, an option it had reserved already in the issue prospectus.
"This week will see quite a large amount being subscribed and, according to the issue prospectus endorsed by CNVM (National Securities Commission), the offer will most likely be increased to 500bn ROL," announced Laurentiu Ciocarlan, director at Raiffeisen Capital & Investment and lead manager of the syndicate brokering the offering. The other brokerage company participating as manager in the brokering of this offer is Finans Securities, Finansbank's own brokerage firm. Ciocarlan continued that most subscription requests thus far had come from major investors and that the response of the retail segment was not really significant.
Earlier this week, Finansbank put out a public bond offering with a par value of 10 million ROL and which will mature in three years. The interest paid by the bank on these bonds will be calculated as the arithmetic mean of the BUBID and BUBOR interest over six months plus 0.75%. The starting interest rate will be 18%. The bonds are to be listed on the Bucharest Stock Exchange (BSE), with subscription requests being taken through the BSE system.
Recent weeks saw increased demand on the Romanian bond market, following an extremely low number of primary offerings in the last four months. BRD Securities, for example, was able to sell its 20bn ROL worth of bonds in only four minutes. On the other hand, quotes for the bonds on the Stock Exchange are several percentage points higher than the par value due to the lack of sellers on the market and because investors are willing to accept lower yields than those initially offered with the bonds upon release.
There will be no significant offerings until next spring, concluded Ciocarlan, due to the coming elections and the Christmas holidays.
vlad.nicolaescu@zf.ro
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