City of Bucharest bond issuance



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

06 Apr 2022



PSD disclosed:

28 Apr 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The EBRD invested EUR 5.5 million (RON 27.33 million) in the City of Bucharest's (the "City") EUR 112 million (RON 555 million) bond issuance.  The bond has a 10-year maturity and was launched to refinance the City's 7-year bond tranche, maturing on 4 May 2022. It is part of the City's Bond Programme in which the EBRD is an existing investor.

As part of the Bank's decision to invest, the Bank will mobilise technical assistance to support the City of Bucharest in developing a Green City Action Plan ("GCAP") as set forth in a Framework Agreement. The GCAP will articulate the City's vision, strategic objectives and priority actions and investments to address its priority environmental challenges.

The bonds will be listed on the Bucharest Stock Exchange by the end of April 2022.

Transition Impact

ETI score: 65

The Project demonstrates the Resilience and Green transition qualities through its support for capital market development and contribution to reduction of GHG emissions.  The Bank's participation in the refinancing given current market uncertainty generated by the war in Ukraine further supports the Resilience quality, by enabling the Bank to ensure a successful refinancing, thereby helping to maintain confidence in local capital markets. The Project will also serve as a trigger for the City of Bucharest to join EBRD Green Cities and the development of a GCAP. The GCAP is expected to serve as a tool for the City to prepare for a future green or sustainable linked bond issuance.

Client Information


The Municipality of Bucharest is the capital and largest city of Romania, with around 1.8 million

inhabitants, split into six sectors, each with its own administrative body. It is also the political and economic hub of the country, being home to the legislative body and generating over 20 per cent of the country's GDP, with local GDP more than three times that of the national average.


In November 2021, Fitch reaffirmed ratings for Bucharest City at "BBB-", with negative outlook.  Fitch said that the affirmation reflects Bucharest's continuing sound operating performance, moderate debt levels relative to the City's operating balance and current revenue, and sound debt ratios.

EBRD Finance Summary

RON 27,750,000.00

Total Project Cost

RON 555,000,000.00

Environmental and Social Summary

Categorised B (ESP 2019). This is a capital market transaction with due diligence being limited to publicly available information. The proceeds of the new bonds would be used to refinance the City's existing municipal bonds (initially issued in 2015 as a refinancing of an existing Eurobond), and are not envisaged to be directed at specific physical assets or any new CAPEX investments. Therefore, Environmental and Social Due Diligence ("ESDD") was focussed on assessing the risks and impacts associated with the Bucharest City's existing environmental and social ("E&S") management systems, practices and compliance record, and review of the risks associated with the existing operations. This has been done through review of documentation and the reporting which the client has produced on previous Projects. Past annual E&S reporting from Bucharest City has been satisfactory. Overall, the City has capacity and capability to implement the Performance Requirements ("PRs") and operates an integrated management system, with ISO 14001 certification for environmental management in place. Further corrective measures required at the corporate level, such as management of occupational health and safety in line with international best practice to meet EBRD PRs), will be addressed through the Framework Agreement. Based on the information from the City and the bond issue prospectus, the indicative portfolio of Enabled Green Economy Transition ("GET") investment projects of the City is likely to be driven by their long-term sustainability plan, focused on green investments with ambitious environmental targets (in particular public transport). The Framework Agreement with the City clearly specifies that the Client will implement these enabled GET investments in compliance with the PRs and the Enabled GET Checklist in the GET Handbook. This bond will be listed on the Bucharest Stock Exchange that has recently introduced best practice environmental, social and corporate governance ("ESG") reporting guidelines with EBRD support. Given the anticipated focus of the City on predominantly green investments, this bond Project serves as a 'trigger' project to develop a GCAP and enable Bucharest to join the EBRD Green Cities. The proposed 'enabled GET' investments are considered Paris Agreement aligned.

Technical Cooperation and Grant Financing

The Bank will assist the City to prepare a GCAP and Bucharest will formally join EBRD Green Cities. The GCAP will help the City prioritise its green investments and prepare for future sustainable or green bond placements. It will also serve as template for regional peer municipalities.

Company Contact Information
(+4) 021 305.55.55
B-dul Regina Elisabeta, Nr. 47, Sector 5, cod postal 050013, Bucuresti

PSD last updated

28 Apr 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

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 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.

Specific requests for information can be made using the EBRD Enquiries form.

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 to get guidance and more information on IPAM and how to submit a request.


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