BCR Leasing to issue bonds

BCR Leasing, part of the Banca Comerciala Romana (Romanian Commercial Bank – BCR) Group is planning to issue two million euros in bonds to raise cash and fund its leasing operations. The price and yield of the bonds will be calculated in euros, but the disbursements will be made in ROL. “The bonds will come with an attractive yield, higher than the interest the State pays for the foreign currency-denominated securities,” said Dan Bunea, head of BCR’s Capital Markets Department. The Finance Ministry has recently launched a new three-year USD-denominated bond issue in two batches sold for 5% during the second release. BCR Leasing’s bonds are to be issued for two or three years. The company says it does not necessarily need financing, and this operation is rather part of BCR Group’s policy to create a market for such instruments. The Romanian market is most inadequately developed when it comes to corporate bonds. Only a handful of companies have placed such securities in a decade. ZF