October 6 (SeeNews) - The International Finance Corporation (IFC) said it has invested 130 million euro ($129 million) in Croatia's first sustainable bond issued by Raiffeisen bank Austria d.d. (RBA), a member of Austria's Raiffeisen banking group, to promote greater market resilience and foster a sustainable economy.
“The investment will support RBA's first-ever issuance under a sustainability bond framework that is aligned with the International Capital Market Association (ICMA) Sustainability Bond Guidelines,” the IFC said in a press release.
“The funds raised by issuing this senior preferred bond will be redirected to financing green and social projects from the spheres of energy efficiency and renewable energy sources, healthcare, education, base infrastructure, and affordable housing. In doing so, we continue to strengthen internal and external sustainability and support the realization of the UN Sustainable Development Goals," said Liana Keseric, CEO of RBA Hrvatska.
The bonds are expected to qualify for the European Union's Minimum Requirement for own funds and Eligible Liabilities (MREL) in line with the European Union's Banking Recovery and Resolution Directive (BRRD). This is RBA's second issuance of MREL-eligible bonds and IFC's second investment in MREL-eligible bonds issued by a bank in Croatia, following the 75 million euro investment in Erste Bank's bonds issuance in June 2021.
Raiffeisenbank Austria d.d. (RBA) started its work in 1994 and is the first bank in Croatia established with foreign capital.
IFC is a member of the World Bank Group, focused on the private sector in emerging markets.
($=1.011 euro)
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