The EBRD invested RON 240 million (ca. EUR 50 million) in subordinated bonds issued by Raiffeisen Bank Romania ("RBRO"), as part of a total issuance of RON 480 million. RBRO intends to list the bonds on the Bucharest Stock Exchange. The subordinated bonds represent Tier 2 instruments and are compliant with the European Union's Capital Requirements Regulation and Capital Requirements Directive IV (commonly referred to as CRR/CRD IV or Basel III).
Moreover, the investment in the bonds shall help RBRO to support investments in the green economy in line with EBRD's Green Economy Transition approach.
With this investment, EBRD is seeking to support the resilience of RBRO's, a systemically important bank in Romania, by contributing to the optimisation of its capital structure through the increase of Tier 2 Capital. In addition, it aims to support RBRO in building the funding base for the minimum requirement for own funds and eligible liabilities.
The project contributes to the Resilient and Well-governed transition qualities. The investment contributes to strengthening RBRO's capitalisation and increase its capacity to recapitalise and absorb potential losses; thus, supporting regulatory alignment with a new and untested framework in Romania. This contributes to the Resilient transition quality while the listing of the bonds will contribute to the Well-governed transition quality
RAIFFEISEN BANK SA
RBRO, a subsidiary of Raiffeisen Bank International, is the fifth largest bank in Romania with a market share of 10.6% and 10% by loans and deposits, respectively (as at year-end 2018). It is designated among the systemically important institutions by NBR and has a long-term deposit rating of Baa3/Stable by Moody's. RBRO provides universal banking services to private individuals, SMEs and Corporates in Romania
EBRD Finance Summary
RON 240,000,000.00 (ca. EUR 50 million)
Total Project Cost
RON 480,000,000.00 (ca. EUR 100 million)
The additionality sources stem from the financing structure whereby: (i) EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, which is necessary to structure the project, (ii) EBRD offers a tenor above the market average, which is necessary to structure the project, and (iii) EBRD offers local currency financing on terms not readily available in the market.
Environmental and Social Summary
Category FI (2014 ESP). RBRO is required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4, and 9, adhere to the EBRD's Environmental and Social requirements and submit the annual environmental and social report to the Bank.
Technical Cooperation and Grant Financing
Company Contact Information
Raiffeisen Bank Sky Tower, Calea Floreasca, nr. 246C, Bucuresti 014476, Romania.
PSD last updated
14 Jan 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.