Romanian lender Banca Transilvania (TLV.RO) plans to sell seven-year convertible bonds to raise EUR30 million, according to the general conditions of the bond which were published on the bank’s website.
The convertible bonds will bear an annual interest rate of 6% to 6.25% over 6-month Euribor, payable twice a year.
The final terms of the bond will be established by the bank’s Board, pending authorization from shareholders at a meeting due October 30.
According to the general prospectus, the period during which bondholders can exercise their conversion option on the new bonds starts 15 months after the issuance date.
The conversion price will be determined based on the volume-weighted average price for the previous 90 trading days prior to the conversion date, by taking into account the Bucharest Stock Exchange transactions on the spot market, adjusted for any stock split.
“Usual provisions concerning anti-dilution/price adjustments will be applied,” the bank said.
Banca Transilvania last issued convertible bonds in 2005, when it raised $24.1 million at a five-year bond sale.
The bank has a share capital of 1.9 billion lei (EUR415 million) split into 1.9 billion shares with a face value of RON1.
Banca Transilvania has a wide ownership, with some of the largest shareholders including the European Bank for Reconstruction and Development with a 14.61% stake and Bank of Cyprus with 9.7%.
On the Bucharest bourse Thursday, Banca Transilvania closed flat at RON1.199 a share.