Raiffeisen Bank issued the bonds in June this year and raised over RON1.2 billion, making it the largest corporate leu-denominated bond issue of a local issuer and the bank’s first non-preferential senior bond issue.
The funds raised will be directed to finance Raiffeisen Bank’s eligible projects to ensure the transition to a sustainable and sustainable economy.
“Through this second issue of green bonds on the local market, we reaffirm our commitment to mobilize financial resources for sustainable purposes and to integrate social and environmental aspects in risk management to ensure a progressive decarbonization of our loan portfolio,” said Steven van Groningen, Raiffeisen Bank President and CEO.
The issue was addressed to institutional investors and attracted RON1.207 billion. The bonds have a 7-year maturity, with a fixed annual coupon of 3.793%, approximately 0.8 percentage points above the yield of government securities issued in the same currency and with the same maturity.
With a total demand of RON1.35 billion, the issue was oversubscribed 1.35 times. The bonds are to be included in the bank’s own funds and eligible debts base, after the prior confirmation of eligibility by the National Bank of Romania.
“The global trend in recent years, oriented towards green financing, thus gradually reaches Romania. We are glad that Bucharest Stock Exchange can offer investors new investment options, such as the green ones. We will continue to develop this sector in line with the strategy of the issuers that consider financing through green financial instruments,” said Radu Hanga, Bucharest Stock Exchange President.
Raiffeisen Bank Romania has over 20 years of activity in the Romanian banking sector and over 2.2 million customers. The bank has over 4,800 employees, over 300 agencies across the country, around 700 ATMs, 400 multi-functional machines (MFMs) and a network of over 24,500 POS.