IIB registers its 1st ever MTN program on Dublin Stock Exchange

The MTN program provides a maximum debt of up to EUR 1.5 billion that could be issued in the international capital markets without specifying a pre-determined time period for these issuances.

IIB says that through the program, it will be able to not only issue benchmark bonds on the international markets but also to flexibly use short market windows and issue private placements in hard or local currencies. The program allows IIB to borrow in various currencies and maturities and gives flexibility in choosing the interest rate type, as well as other parameters for issuances within its framework. 

The program will serve as a framework for future debt placements, was prepared in collaboration with JP Morgan as an arranger and a permanent dealer, with five other financial institutions in the role of permanent dealers, namely, UniCredit Bank, ING Bank, Goldman Sachs, OTP Bank, Raiffeisen Bank. The MTN program is registered on Euronext Dublin. 

 "The MTN program is sign of maturity of IIB as an issuer on international capital markets. We are committed to improve recognition of IIB’s brand internationally and to bring our funding options to a qualitatively new level. This is a right step in that direction," noted IIB management board chairperson Nikolay Kosov.

"We believe the program is increasing IIB’s visibility globally and is creating a prerequisite for further investor diversification. It brings a high level of standardization of the documentation required for debt placements and a timely and effective execution of the transactions," first deputy chairperson of the IIB management board in charge of treasury and funding Josef Kollar pointed out.

"Although it is unfortunate it overlaps with a very difficult market context, this new framework will provide us with the ability to execute transactions very fast, which in volatile markets is a key issue," he added.