Raiffeisen Romania issues RON 500 mln of 5-yr sustainability bonds
Raiffeisen Romania announced that it placed a new issue of corporate bonds in local currency (RON), the bank's fourth issue of MREL eligible bonds and the first series of sustainability bonds, through which it raised RON 500.85 mln from…
Andrei Chirileasa · Journalist
· Updated · 1 min read
Raiffeisen Romania announced that it placed a new issue of corporate bonds in local currency (RON), the bank's fourth issue of MREL eligible bonds and the first series of sustainability bonds, through which it raised RON 500.85 mln from institutional investors, with a maturity of 5 years.
The issue was oversubscribed twice compared to the target size of the private placement.
The bonds will pay a fixed annual coupon of 8.92%, but the issue price was not revealed, meaning the yield can not be known before they are traded.
The bonds are going to be listed both on the Luxembourg Stock Exchange (LuxSE) and the one from Bucharest (BVB).
They will be included in the base of equity and subordinated debt of the bank, after prior confirmation of MREL eligibility (eligibility for the minimum amount of equity and subordinated debt) by the National Bank of Romania (BNR), according to the information sent on by the bank.
The funds raised will be used to finance sustainable projects, according to the eligibility criteria described in the Bank's Framework for Sustainability Bonds.
International standards define Sustainability Bonds as loans used to finance projects that bring clear environmental and socio-economic benefits.
(Photo: Iryna Drozd/ Dreamstime)
