TBI Bank will initially offer for subscription up to 200 nonconvertible, unsecured, freely transferable bonds at a price of 100,000 euro each, equal to their par value, outside the regulated market between June 17 to June 21, the lender said in a bourse filing. The total placement comprises 500 bonds.
Investors must specify an interest rate between 8.75% and 9.00%, below which they do not wish to subscribe for the initially offered bonds.
The issue will have a maturity of 30 months, with interest payments due quarterly, while the principal will be paid back in one go at maturity, TBI Bank said earlier in a bond issue prospectus. Additionally, the lender has the right to exercise a call option one year before maturity, upon disqualification of the bonds as eligible liabilities or for tax reasons.
The offering will be considered successful if it attracts investments of at least 5 million euro.
In the event of oversubscription, TBI Bank will have the right to issue additional bonds until it reaches the maximum amount of 50 million euro. The lender stands to make 97.7 million levs ($54.44 million/49.95 million euro) if the maximum amount of the issue is subscribed.
The raised funds will go towards expanding and developing the bank's commercial activities, as well as meeting general liquidity needs and the minimum requirements for own funds and eligible liabilities.
In December, TBI Bank issued an oversubscribed 10 million euro three-year bond, its second for 2023.
($ = 0.9176 euro)