BCR and Raiffeisen Bank, two of the biggest banks in Romania, controlled by the Austrian groups Erste and Raiffeisen, have raised RON 1.28 billion (EUR 248 mln) with two green bond issues carried out in June.

Both lenders said they placed more bonds than initially planned due to high demand from investors.

On Wednesday, June 15, BCR raised RON 702 million (EUR 142 mln), double the planned amount (RON 350 mln).

“We remain consistent and extend our commitment to issue green bonds, as part of our vision for the sustainable and long-term transformation of the Romanian economy. Investors are increasingly paying attention to the resources they choose to support and we are pleased to see this concern increasingly present in Romania. It is a sign of responsibility and, at the same time, of confidence in the capital market, even in a difficult international context,” stated Sergiu Manea, CEO of BCR.

This is BCR’s second green bond issuance, in senior non-preferred format, with a 5-year maturity. The notes have been assigned a long-term rating of BBB+ by Fitch and will be listed on the Bucharest Stock Exchange.

The yearly coupon is 9.079%, standing for a yield of 95 bps over the benchmark, which is represented by Romanian Government bonds with the same maturity.

On June 10, Raiffeisen Bank also placed a 5-year green bond issue and raised RON 525 mln (EUR 106 mln) from investors.

The private placement was 1.85 times oversubscribed, and the yearly coupon was set at 8.927%.

The bonds will be traded on the Luxembourg and Bucharest Stock Exchanges.

“We are pleased with the interest shown by institutional investors in green bonds, which shows that sustainability issues play an increasingly important role in the decision-making process of capital allocation,” said Mihail Ion, CFO and Vice President at Raiffeisen Bank.

(Photo: Monthira Yodtiwong/ Dreamstime)

andrei@romania-insider.com