Raiffeisen Bank floats second green bonds issue in Romania

The second green bonds issue of Raiffeisen Bank (Romania) started trading on July 2nd, on the Bucharest Stock Exchange (BVB) main market.

Raiffeisen Bank raised in June 2021 over RON 1.2 bln (EUR 240 mln), with the largest corporate bond issue in local currency (RON) of an issuer in Romania and the first non-preferential senior bond issue of the bank.

The funds raised will be directed to finance Raiffeisen Bank's eligible projects to ensure the transition to a sustainable economy.

The bonds have a 7-year maturity, with a fixed annual coupon of 3,793%, approximately 0.8 pp. over the yield of government securities issued in the same currency and with the same maturity.

The bonds are to be included in the bank's funds and eligible debts base after the prior confirmation of eligibility by the National Bank of Romania.

The total value of the two Raiffeisen Bank green bond issues traded on the stock exchange is RON 1.6 bln (EUR 320 mln).

"Through the 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.

(Photo: raiffeisen.ro)