EBRD Makes Investment in Romania’s First Green Bonds

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by KnowESG

The European Bank for Reconstruction and Development (EBRD) has invested RON 131 million (€26 million equivalent) in Romania's first sustainability bonds, issued by Raiffeisen Bank Romania, to strengthen its position in sustainable finance and as a strong supporter of capital markets (RBRO).

In a private placement on August 17th, Raiffeisen, a subsidiary of the Austria-based business Raiffeisen Bank International, raised RON 500 million (€102 million equivalent) in a private placement.

The senior non-preferred sustainability bonds will mature in five years and will be listed on the Luxembourg Stock Exchange and the Bucharest Stock Exchange.

The EBRD intends to support the resilience of RBRO, a Romanian systemic bank, with this investment. It will promote capital market development in a regional environment impacted by Russia's war on Ukraine and inflationary pressures by encouraging the expansion of the market for senior non-preferred and senior preferred bonds, as well as instruments denominated in local currency.

In Romania, the EBRD supports initiatives with clear environmental and social benefits. This deal will promote inclusion by supporting SMEs in Romania's underdeveloped regions.

The EBRD is Romania's major institutional investor. It has spent around €10 billion on 491 projects in the country to date.

Source: EBRD

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