Romanian subsidiary of the Austrian group Raiffeisen Bank International, Raiffeisen Bank Romania raised RON 400 million (€81 million equivalent) to finance climate and environmental projects thanks to a healthy demand with European Bank for Reconstruction and Development (EBRD) investing RON 53 million.
By investing in Raiffeisen’s senior preferred green bond, EBRD is reinforcing its position as a leader in green finance and a strong supporter of capital markets. The bonds have a five-year maturity and are expected to be listed on the Luxembourg Stock Exchange and on the Bucharest Stock Exchange.
The issuance was 1.6 times oversubscribed.
“The EBRD remains at the forefront of efforts to strengthen Romania’s capital markets. Today we are pleased to back the country’s first green bonds. This pioneering move by Raiffeisen will pave the way for the creation of more securities intended to support sustainability, as the strong market reaction indicates,” Mark Davis, EBRD Regional Director for Romania and Bulgaria, said.
The EBRD aims to become a majority green bank and dedicate more than half of its work to climate finance by 2025.
“Through this issue, we want to reaffirm our commitment to contributing to the development of sustainable and prosperous communities by mobilising resources for projects that generate value for society as a whole and have a positive societal and environmental impact,” said Steven van Groningen, President and CEO of Raiffeisen Bank Romania.
EBRD’s overall investment stands at almost €9 billion in Romania to date, with 76% of that in the private sector.
Source Actmedia