Raiffeisen Romania’s bonds to be floated on May 15

Raiffeisen Bank on May 6 received the approval from the financial markets supervisor (ASF) for the bond listing prospectus.

Thus, its bonds launched in December 2019 are to be traded on the Bucharest Stock Exchange starting May 14, 2020.

In December 2019, Raiffeisen Bank issued through a private placement the first subordinated bonds in local currency on the local market with a maturity of 10 years. The bond issue has a value of RON 480 million (EUR 100 mln) and a 3.5% annual coupon payable quarterly. The only investors were two international financial institutions: the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).

"The bonds received the approval of the BNR for inclusion in the bank's own funds, strengthening and diversifying its capital position. With these funds, the bank will support its customers through the difficult period we are facing and will contribute to the sustainable financing of the Romanian economy," said James Stewart, Raiffeisen Bank Vice President for Treasury and Capital Markets.

(Photo source: Shutterstock)