The successful issuance of EUR 300 million in Senior Non-Preferential Notes by CEC Bank stands as a remarkable achievement, signifying a significant stride in its expansion within international capital markets. This move not only showcases the bank's financial prowess but also highlights its ability to attract substantial investor interest.
Unlock the Potential of CEC Bank's Capital Market Ventures
Significance of the Bond Issuance
The bonds issued under the bank's EUR 1.5 billion Medium-Term Note (MTN) Programme hold great importance. They are aimed at fulfilling MREL (Minimum Requirement for Own Funds and Eligible Liabilities) compliance, demonstrating the bank's commitment to maintaining a strong financial position. The BB rating from Fitch Ratings, which aligns with the bank's IDR rating, further validates its creditworthiness.This bond issue, priced with a coupon of 5.625%, witnessed an overwhelming response. It was more than twice oversubscribed, with orders exceeding EUR 800 million from a wide and international investor base. Such high demand clearly indicates the growing confidence in CEC Bank's financial performance and strategic direction.Insights from Key Executives
Ionuț Lianu, Chief Management Officer for Assets and Liabilities at CEC Bank, emphasized the significance of the high level of interest shown by market participants. He stated that it symbolizes trust and appreciation for the bank's achievements in recent years. This trust is a testament to the bank's efforts in building a strong reputation and delivering value to its stakeholders.Maxim Boersig, Head of FIG Origination at Erste Austria, highlighted the success of the transaction. He noted that the impressive order book of over EUR 800 million paves the way for further successful capital market ventures for CEC Bank. This indicates the bank's potential to continue attracting investors and accessing international capital markets.Théophile Despres, Vice-President at ING CEEMEA DCM, pointed out the pricing achievement. He mentioned that the final pricing was set 37.5 basis points below the initial guidance, demonstrating the bank's ability to optimize its financing costs. This is a crucial aspect in today's competitive financial landscape.In conclusion, CEC Bank's EUR 300 million Senior Non-Preferential Notes issuance is a significant event that reflects the bank's growth and success in international capital markets. It has garnered significant investor interest and set a positive precedent for future capital market activities. The bank's commitment to compliance and its ability to attract top ratings and investor support are key factors in its continued growth and development. READ MORE