September 5 (SeeNews) - Bosnian lender Nasa Banka [BANJ:PIBB] said it plans to issue a seven-year green bond worth 7 million marka ($3.9 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%, Nasa Banka said in a notice last month.
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 August 16, when they closed 10% lower at 0.72 marka.
(1 euro = 1.95583 marka)