Clifford Chance acted for banks on debt issuance programme and inaugural bond issues

Clifford Chance acted for banks on debt issuance programme and inaugural bond issues

International law firm Clifford Chance advised Citigroup and Raiffeisen Bank International on the establishment of a 600 million Euro Medium Term Note (EMTN) programme for CEC Bank S.A., a Romanian state-owned universal bank. The EMTN programme provides options for issues of various types of notes, including ordinary senior notes, subordinated notes, and MREL-eligible notes. This flexibility is likely to provide CEC Bank with access to a wider range of funding sources and help it to meet its financial objectives.

The listing of the notes on the regulated market in the Luxembourg Stock Exchange and/or the Bucharest Stock Exchange provides an additional layer of transparency and credibility, which is likely to be attractive to investors.

Further, Clifford Chance advised Raiffeisen Bank S.A. on a non-syndicated dual-tranche private placement of senior non-preferred EUR and RON-denominated MREL eligible bonds under the above-mentioned programme in December 2022.

The bonds have a volume of EUR 97 million with a coupon of 7.5 per cent and RON 175 million with a coupon of 9.0 per cent, both with a term of three years.

In January 2023, Clifford Chance advised Citigroup, Raiffeisen Bank International and Raiffeisen Bank S.A. on CEC Bank's inaugural public offering of senior non-preferred EUR denominated MREL eligible bonds of CEC Bank with a volume of EUR 119.3 million, a term of five years (callable after four years) and a fixed to floating interest structure with a fixed interest coupon of 7.5 per cent until the first call date. The bonds will be listed on the regulated markets of the Luxembourg Stock Exchange and the Bucharest Stock Exchange. The bond proceeds will be used to meet CEC Bank's MREL requirements for 2023.

Clifford Chance frequently advises corporate and financial institution issuers and bank syndicates in connection with EMTN programmes as well as on bond issues under such programmes. Clifford Chance is also frequently involved in bond issues by issuers based in Central and (South) Eastern European countries.

The international Clifford Chance advisory team for the banks comprised partner Sebastian Maerker, senior associate Wolfgang Ettengruber and transaction lawyers Marlen Klepsch and Lea Teckentrup (all Capital Markets, Frankfurt), partner Madalina Rachieru and senior associate Georgiana Evi (both Capital Markets, Bucharest) and senior associate Maria de Elizalde (Capital Markets, Madrid).

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