Banca Transilvania is to issue the first foreign currency convertible subordinated bonds in Romania.
The issue will be worth US$25 million, of which the first US$20 million is reserved for the International Finance Corporation, the private arm of the World Bank Group, which has supported Banca Transilvania in the issue process.
The bonds, which have a nominal value of US$ 10,000 ecah, will not be traded on a regulated market. They catrry a semi-annual coupon of 6 months LIBOR plus 3%. The bonds mature on 15 July 2010.
The bonds can be converted into Banca Transilvania shares on November 1 2006, 2007, 2008 ands 2009 and 15 June 2010.
Shareholders in Banca Transilvania enjoy pre-emption rights.