The bond issue is worth RON702 million, with senior non-preferred financing, which means it has no trading record. Also, it has a five-year maturity and an interest rate of 9.079%
The issuance represents the second green bond issuance of BCR and will be listed on the Bucharest Stock Exchange. The bonds have been assigned a long-term rating of BBB+ by Fitch.
Over the last three years, BCR has issued bonds in the amount of RON3.75 billion, being one the most active issuers on the Bucharest Stock Exchange.
The book building process has shown strong interest from investors, hence the value of the issuance was increased from minimum RON350 million to RON702 million, while the yield of 95 bps over the benchmark, translating into a coupon of 9.079%, also reflecting the solid performance of the bank. The distribution was balanced between pension funds, asset managers, insurance companies, credit institutions and benefited from the notable participation of International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).
“We remain consistent and extend our commitment to issue green bonds, as part of our vision for sustainable and long-term transformation of the Romanian economy. Investors are increasingly paying attention to the resources they choose to support and we are pleased to see this concern increasingly present in Romania. It is a sign of responsibility and, at the same time, of confidence in the capital market, even in a difficult international context”, stated Sergiu Manea, CEO of BCR.
With this issuance, BCR took another step forward towards the compliance with the EU regulations on the minimum capacity that banks must have in order to absorb the losses, the Minimum Requirements of own funds and Eligible Liabilities (MREL) and MREL guidelines in line with targeted resolution strategy.