EUR 500 mln bonds with a seven-year maturity were issued by Erste Group intended for supporting “green” projects in the real estate sectors in Austria and Romania.
The bonds were oversubscribed, issued at a spread of 35bp over the mid-swap and they have a fixed coupon of 0.125% as well.
With this sustainability bond, Erste Group revealed that it conquered one more milestone in its operations in the ESG sector.
According to Bernd Spalt, the Erste Group CEO, ecological and social responsibility will be the main merits and a solid foundation for an economic success. Spalt also stated that the company is doing this with its primary sustainability bond by funding social and green projects.
Crédit Agricole CIB, Deutsche Bank, Erste Group, ING (Sole Sustainability Structuring Advisor), and LBBW were also part of the whole process in the roles of bookrunners.
The issue’s proceeds are intended for funding various projects selected by Erste Group’s Sustainable Finance Framework (SFF).
This includes projects in Romania from the real estate sector that are under the “green” banner as well as Austrian projects in the housing sector that have certification under the social and ecological criteria.
Source: Romania Insider