October 12 (SeeNews) - Bosnian lender Nasa Banka [BANJ:PIBB] said on Thursday it is inviting investors to subscribe for its first issue of seven-year green bond planned in the amount of 7 million marka ($3.8 million/3.6 million euro).
The bank plans to issue 70,000 green bonds, each with a par value of 100 marka, which will carry an interest rate of 5.15%, it said in a bourse filing.
The offering will be available for subscription for a period of 30 days starting October 24.
In the first two years, only interest payments will be made semi-annually, while for the subsequent five years, the principal and interest will be paid in equal semi-annual annuities, the lender said.
The funds raised from the offering will go towards granting loans to private individuals and companies for sustainable development-related projects, specifically prioritising those aimed at reducing CO2 emissions. Projects can include purchase of heat pumps, solar panels, electric cars, and any other activities that lead to a decrease in CO2 emissions, the lender said.
Nasa Banka's shares last traded on the Banja Luka Stock Exchange (BLSE) on October 10, when they closed flat at 0.72 marka.
(1 euro = 1.95583 marka)