Alina Oprea • 4 April, 2023 at 4:43 PM
On March 31, Raiffeisen Bank issued a second tranche of sustainable bonds amounting to approximately RON 490 million (€98 million) as part of the reopening of the last series of sustainable bonds. The bond issue was addressed to institutional investors and was subscribed at a yield of 8.295% per year, respectively 1.2 percentage points above the yield of reference government securities in lei with the same maturity, according to a press release.
Thus, the bond issue of series 6 reaches RON 488.25 million (€97.65 million), and the cumulative volume of MREL eligible notes (minimum requirements of own funds and eligible debts) issued to date has exceeded the threshold of RON 3.4 billion (€680 million).
The bonds are to be included in the base of own funds and eligible liabilities of the bank, after the approval of the National Bank of Romania and will be listed both on the Luxembourg Stock Exchange (LuxSE) and on the Bucharest Stock Exchange (BVB).
The funds raised will be used to finance sustainable projects, according to the eligibility criteria described in the bank's Framework for Sustainable Bonds. At least 50% of the funds will be directed to the financing of social projects - the financing of small and medium-sized enterprises in underdeveloped regions at the national level, affordable housing, access to essential health services, education, and infrastructure.
The difference will be allocated to finance projects that support the green transition - green buildings, renewable energy projects, energy efficiency projects, ecological transport and agriculture, pollution prevention and control projects, circular economy, and sustainable management of water resources.