BUCHAREST (Romania), May 12 (SeeNews) - The European Bank for Reconstruction and Development said that it is investing 53 million lei ($13 million/11 million euro) in a senior preferred green bond issue by Raiffeisen Bank Romania worth 400.6 million lei.
Through the investment, the EBRD aims to reinforce its position as a leader in green finance and a strong supporter of capital markets, the bank said in a press release on Tuesday.
"The EBRD remains at the forefront of efforts to strengthen Romania’s capital markets. Today we are pleased to back the country’s first green bonds. This pioneering move by Raiffeisen will pave the way for the creation of more securities intended to support sustainability, as the strong market reaction indicates," EBRD regional director for Romania and Bulgaria Mark Davis said.
Raiffeisen Bank Romania raised 400.6 million lei through a green bond placement, with which it plans to finance eligible project that can ensure transition to a sustainable, durable economy, it said on Friday. The bonds have a five-year maturity and a fixed coupon rate of 3.086%. The issue was 1.6 times oversubscribed.
The green bonds are expected to be listed on the Luxembourg Stock Exchange and on the Bucharest Stock Exchange.
(1 euro=4.7781 lei)
Raiffeisen Bank SA is among the biggest banks in SEE, for more reference take a look at Top 100 banks