The issue was oversubscribed twice the amount originally announced at the opening of the private placement.
The bonds will pay a fixed annual coupon of 8.92%, which is about 1.1% above the yield on benchmark leu-denominated government securities of the same maturity, and will be listed on both the Luxembourg (LuxSE) and Bucharest (BVB) stock exchanges.
They will be included in the bank’s own funds and eligible debt base, after prior confirmation of eligibility by Romania’s central bank, the lender’s representatives said on Thursday.
“We are pleased with the interest shown by institutional investors for the first issue of sustainability bonds on the local market, which shows us that social aspects, not only environmental ones, are starting to play an important role in the capital allocation decision-making process,” said Cristian Sporiș, Vice President Corporate at Raiffeisen Bank.
The funds attracted will be used to finance sustainable projects, according to the eligibility criteria described in the bank’s Sustainability Bond Framework.
(English version by Loredana Fratila-Cristescu)