November 29 (SeeNews) - Raiffeisen Bank Romania raised 369 million lei ($78 million/75 million euro) from institutional investors through a non-preferential senior sustainable bond placement, it said on Tuesday.
The bonds will be included in Raiffeisen's own funds and eligible debts, after receiving the approval of Romania's central bank, Raiffeisen Bank Romania said in a press release.
The bonds have a five-year maturity and a fixed coupon rate of 8.817%, 1.2 p.p. over the yield of government securities in lei with the same maturity, the bank added.
At least 50% of the funds will be directed to the financing of small and medium-sized enterprises (SMEs) in underdeveloped regions at the national level, affordable housing, access to essential health services, education and infrastructure. The difference will be allocated to finance projects that support the green transition, such as green buildings, renewable energy projects, energy efficiency projects, ecological transport and agriculture, pollution prevention and control projects, circular economy and sustainable management of water resources, the bank said.
The bonds are to be listed on the Luxembourg and Bucharest stock exchanges.
In the last two years, Raiffeisen Bank Romania raised approximately 3.3 billion lei through bond issues.
Raiffeisen Bank Romania serves 2.28 million customers, both private individuals and legal entities. The bank has over 4,700 employees, around 300 branches across the whole country, 1,131 ATMs and MFMs, and a network of over 28,000 POS terminals.
On November 2, Raifeisen Bank Romania listed a 325.5 million lei sustainable senior bond issue on the regulated market of Bucharest Stock Exchange, BVB.
(1 euro=4.9184 lei)
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