The EBRD invested RON 255 million (ca. EUR 51.8 million) in a senior non-preferred green bond issuance of RON 1.2 billion launched by Raiffeisen Bank S.A., a commercial bank incorporated in Romania, on 4 June 2021. This is the first senior non-preferred instrument issued by Raiffeisen Bank, and the first senior non-preferred green bond issued by a commercial bank in Romania. The bond has a 7-year maturity, with a call option after the sixth year, and is listed on the Luxembourg and the Bucharest Stock Exchangess. Proceeds of the green bond will be used for eligible projects in line with the Green Bond Framework of Raiffeisen Bank.
The EBRD further invested RON 136.5 million (ca. EUR 27.6 million) in a senior non-preferred green bond issuance of RON 525 million launched by Raiffeisen Bank on 7 June 2022. The bond has a 5-year maturity, with a call option after the fourth year, and is listed on the Luxembourg and the Bucharest Stock Exchanges. Proceeds of the green bond will be used for eligible projects in line with the Sustainability Bond Framework of Raiffeisen Bank.
The project contributes to the resilience of a systemic bank in Romania, facilitates capital market development in the country, supports the first ever green bond framework launched by a Romanian bank, that is aligned with the Green Bond Principles of the International Capital Market Association, and helps to deliver the EBRD's green agenda in the country and national green economy priorities.
The project delivers transition impact through the Resilient quality, as it (i) promotes capital market development in Romania by introducing the first senior non-preferred green bond issued by a Romanian bank and through facilitating the expansion of the market for new instrument types and for instruments in local currency; and (ii) is expected to increase the volume of own funds and eligible liabilities of RBRO and strengthens the bank's resilience and regulatory compliance. The project also supports the Green transition quality by helping develop the market for green instruments in Romania and supporting Raiffeisen Bank and Romania's strategic sustainability priorities and the EBRD's Green Economy Transition approach.
RAIFFEISEN BANK SA
Raiffeisen Bank S.A. is the sixth largest bank in Romania with a market share of 9.3% in terms of total assets as of year-end 2020. On a consolidated basis, Raiffeisen Bank reported total assets of EUR 10.7 billion and total equity of EUR 1.1 billion as at the same period. The bank is classified as an "other systemically important institution" and is rated Baa1 (Negative) by Moody's. Raiffeisen Bank International AG owns 99.92% of Raiffeisen Bank S.A.
EBRD Finance Summary
RON 391,650,000 (ca. EUR 79.2 million)
Total Project Cost
RON 1,732,500,000 (ca. EUR 351.5 million)
The project is additional in terms of financing structure and risk mitigation. Additionality derives from supporting the successful issuance in a still shallow market, the expansion of the market for local currency instruments and from promoting green investments. The Project also involves an innovative structure and standard-setting as the EBRD has supported the preparation of Raiffeisen Bank's Green Bond Framework by sharing know-how and experience and promoting the incorporation of best market standards and practice.
Environmental and Social Summary
Categorised FI (ESP 2019). Raiffeisen Bank S.A. is an existing client of the Bank whose environmental and social (E&S) performance is satisfactory. RBI has a well-developed framework for the management of key environmental and social issues and this framework is applicable across all its network banks in CEE, including Romania. Under the existing exposures, Raiffeisen Bank is in compliance with the EBRD's Performance Requirements 2, 4 and 9 as evidenced by previous and existing reporting on both past and current EBRD projects with Raiffeisen Bank. Any renewable energy projects financed under the project will need to comply with EBRD's E&S eligibility criteria for wind, hydro, solar, geothermal or biomass projects, as applicable. RBRO will be required to continue to apply its current E&S framework to ensure on-going compliance with the applicable PRs and to provide annual E&S report to the EBRD.
Company Contact Information
+40 733 104 293
+40 21 230 0700
Calea Floreasca 246D Bucuresti 014476
PSD last updated
06 Jul 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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.