EBRD investing 135 mln lei (27 mln euro) in UniCredit Romania bond

The investment in the bond will further enhance the lending capacity of UniCredit Bank SA, a lender of systemic importance in Romania, the EBRD said in a press release on Monday.

The funding will be channeled for on-lending to businesses in Romania that have been directly or indirectly affected by economic consequences of the war on Ukraine, with the ultimate goal of preserving livelihoods in the country, the bank added.

On December 21, International Finance Corporation (IFC), a member of the World Bank Group, said it has invested $80 million (75 million euro) in the same bond issue of UniCredit Bank Romania.

Also last Wednesday, UniCredit Bank Romania said it has raised more than planned 488.5 million lei from institutional investors through a senior unguaranteed bond placement. The bank had planned to raise 450 million lei, but the offer was oversubscribed by local institutional investors and international financial institutions, it said at the time.

The bonds have a five-year maturity, with a fixed coupon rate of 9.07%, and will be listed on the Bucharest Stock Exchange.

(1 euro=4.9278 lei)