Raiffeisen Bank Romania listed on June 24 its third green bond on the Bucharest Stock Exchange (BVB) worth RON 525 mln (EUR 106 mln). Including the previous two issues from 2021, the total value of the three offers listed exceeds RON 2 bln (some EUR 400 mln).

The non-preferential senior green bonds, which entered trading on June 24, have a maturity of 5 years and an annual fixed interest rate of 8.927% per year.

Raiffeisen Bank issued and sold under a private placement to 13 bondholders and legal entities a number of 1,000 bonds with a nominal value of RON 525,000 each - visibly not for retail investors.

Such green bonds issued by banks are rarely traded on the BVB market where they are listed, and the actual yield can not exactly be known as they are issued in private placements at prices that may be below or above par. The buyers are the open-end investment funds, often managed by the asset management arms of the same financial groups that operate the banks.

Raiffeisen Bank Romania pays deposit interest rates of 4.75% and 6% for the 12 and 24-month deposits to households, the sole term deposits available at the bank.

As regards the use of proceeds, Raiffeisen Bank says that it will "apply an amount equivalent to the net proceeds from the issue of the notes for financing and/or refinancing, in part or in full, new or existing eligible loans providing distinct environmental benefits (Eligible Green Loans), as further described in the Issuer's Sustainability Bond Framework." 

andrei@romania-insider.com

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