Alpha Bank Romania successfully placed the first ever covered bond in Romania

Alpha Bank Romania announces the successful placement of its inaugural €200 million euro-denominated covered bond issue, the first ever from a Romanian bank. This marks a milestone for both Alpha Bank Romania and the Romanian Capital Markets.

The bond, which has a five year maturity and pays a floating rate coupon, is backed by prime Romanian residential mortgages and is rated (P) Baa2 by Moody’s. The transaction attracted strong investor interest from both local and international institutional investors, including the IFC and the EBRD.

Sergiu Oprescu, Executive President of Alpha Bank Romania said “Almost 18 years after the launch of the first ever mortgage loan in 2001, Alpha Bank Romania is opening a new chapter in the Romanian banking market with this new funding tool, demonstrating once again its pioneering capabilities”.

The bond will be listed on both the Luxembourg and the Bucharest Stock Exchanges. “Covered bonds are modern financing tools that will contribute to the development of Romanian financial institutions and the capital market” said Sergiu Oprescu.

The transaction was managed by Barclays Bank PLC acting as Lead Manager and Alpha Finance Romania as Co-Manager.

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