In investment banking, the biggest event of the year was the €2 billion IPO of Hidroelectrica in Romania, Europe’s biggest IPO in 2023. This was Romania’s largest-ever IPO and played a role in reopening the market across the continent, thanks to a strong performance in the secondary market. It also helped reawaken the international capital market to the opportunities in central and eastern Europe.
Citi, whose regional investment bank is led by Marzena Fick, was global coordinator on the Hidroelectrica IPO, and it was central to an array of other deals in the region. In Romania, for example, it also advised private equity company Mid Europa on the €1.8 billion sale of food retailer Profi to Belgian supermarket chain Ahold Delhaize and advised Greek power company PPC on the €1.9 billion acquisition of Enel’s Romanian operations.
In addition to wide-ranging debt work for the Romanian sovereign, Citi was also bookrunner on private-sector Romania bond deals including Banca Transilvania’s €500 million sustainable debut and Erste-owned BCR’s debut green bond shortly afterwards.
In Poland, M&A and equity capital markets activity was much thinner than in previous years, but Citi’s was active in the key debt capital markets deals. It was joint bookrunner and paying agent on a $5 billion 10- and 30-year bond for the Polish sovereign. This was Poland’s first 30-year dollar public bond, constituting what Citi says is the largest dollar-denominated transaction in the region.
Citi was also joint bookrunner on Polish lender Bank Pekao’s first international and green bond offering. It acted as bookrunner on Orlen’s €500 million return to the Eurobond market after a two-year hiatus, on Polish retail firm Pepco Group’s €375 million debut RegS senior secured issuance and was joint global coordinator on footwear company CCC’s $120 million capital increase.
Citi was global coordinator on the Hidroelectrica IPO, and was central to an array of other deals in the CEE region
In the Czech Republic, Citi was financial adviser to CEPS on its €1.3 billion acquisition of Net4Gas and to CEZ on the sale of its 50% stake in AKCEZ to Torunlar Enerji and Başkentgaz in Turkey. It was joint global coordinator on a €500 million RegS senior unsecured bond for EPH, the company’s first international bond. And in Hungary, it was joint bookrunner and dealer-manager on an impressive $4.25 billion triple-tranche bond for the sovereign and later, on a $1.125 billion bond for Hungarian development bank MFB.
In Turkey, Citi’s preeminence was also on show, whether on the TL6.8 billion ($250 million) accelerated equity offering in Yapi Kredi Bank or in its role as exclusive financial adviser to Oyak in a €673 million deal for Taiwan Cement Company to acquire a 20% stake in the firm, at the same time as increasing its stake in Cimpor Portugal (previously owned by Oyak) from 40% to 100%.
Citi’s debt work in Turkey was wide ranging and included: a sovereign issue that helped reopen the sub-investment grade market; sustainable bonds for clients such as TSKB, VakifBank and Yapi Kredi; and a rare tier-2 bond for QNB Finansbank. In addition, Citi helped airports company TAV issue an inaugural Eurobond and was instrumental in a $330 million privately placed senior secured issue by cruise port operator Global Ports.
