EBRD invests 240 mln lei (50 mln euro) in Raiffeisen Bank Romania bond issue

The funds will strengthen and optimise the capital structure of Raiffeisen Bank Romania, the fifth largest bank in the country, and will also help Raiffeisen support investments in the green economy in line with the EBRD green economy transition approach, the EBRD said in a press release on Monday.

Raiffeisen Bank said last week it has successfully placed a 480 million lei, 10-year bond issue on the Romanian market, the sole two investors in which were the EBRD and the International Finance Corporation (IFC), a member of the World Bank Group. Raiffeisen did not provide a breakdown of the investment figures.

This is the first local currency subordinated bond issuance in the Romanian market, EBRD noted, adding that the bonds will be listed on the Bucharest Stock Exchange, supporting local currency listed instruments in the local market.

Raiffeisen Bank Romania, a subsidiary of Raiffeisen Bank International, had a market share of 10.6% and 10% by loans and deposits, respectively, as at the end of last year, the EBRD said.

(1 euro=4.76907 lei)