May 30 (SeeNews) - Bulgaria's TBI Bank said on Tuesday that it will start on June 5 offering securities as part of a three-year bond issuance programme worth 20 million euro ($21.5 million).
The annual coupon will be in the range of 8.5% to 9.0%, TBI Bank said in a press release. The bond offering will close at midday on June 9.
The non-convertible bond, comprising 200 transferable securities of 100,000 euro in par value each, has a repayment option one year before maturity, the privately-held lender added. The maximum amount of the issuance can reach 70 million euro in case of oversubscription.
"We offer institutional and individual professional investors an excellent opportunity to protect their money from inflation, as bonds are currently the best investment option in terms of risk-to-return ratio. We took into account the current market conditions in Europe and therefore decided to offer investors an attractive yield and a shorter maturity," TBI Bank's executive director Lukas Tursa said.
According to Tursa, TBI Bank's expectations are for interest rates in the eurozone to peak this year and thus, within two to three years the lender will have the opportunity to refinance the bond at a lower interest rate.
The offering will be declared successful if investors subscribe for and settle a minimum amount of 5 million euro, according to the bond issuance prospectus published by the bank.
($ = 0.9316 euro)
TBI Bank EAD is among the biggest banks in SEE. You can download our SEE Top 100 ranking
here or subscribe to our free Top 100 newsletter
here