Raiffeisen Romania sustainability bond investment

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The EBRD invested RON 131.3 million (ca. EUR 26.7 million) in a senior non-preferred sustainability bond issuance of RON 500.9 million launched by Raiffeisen Bank S.A., a commercial bank incorporated in Romania, on 10 August 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 sustainability bond will be used for eligible green and social projects in line with Raiffeisen Bank's sustainability bond framework. This is the first sustainability bond issued in Romania.

The EBRD further invested RON 58.8 million (ca. EUR 11.9 million) in a senior preferred sustainability bond issuance of RON 325.5 million launched by Raiffeisen Bank on 11 October 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 sustainability bond will be used for eligible green and social projects in line with Raiffeisen Bank's sustainability bond framework.

The EBRD further invested RON 89.8 million (ca. EUR 18.2 million) in a senior non-preferred sustainability bond issuance of RON 369.1 million launched by Raiffeisen Bank on 25 November 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 sustainability bond will be used for eligible green and social projects in line with Raiffeisen Bank's sustainability bond framework.

The EBRD further invested EUR 20 million in a EUR-denominated, senior non-preferred sustainability international bond issuance of EUR 300 million launched by Raiffeisen Bank on 5 October 2023. The bond has a 5-year maturity, with a call option after the fourth year, and is listed on the Luxembourg Stock Exchange. Proceeds of the sustainability bond will be used for eligible green and social projects, in line with Raiffeisen Bank's sustainability bond framework.

Project ID 53776

Status Signed

Location

Romania

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Romulus Mircea
romulus.mircea@raiffeisen.ro
+40 733 104 293
+40 21 230 0700
http://www.raiffeisen.ro
Calea Floreasca 246D Bucuresti 014476

Project ID 53776

Status Signed

Location

Romania

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

20 Jul 2022

Disclosure date

18 Aug 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.

Raiffeisen Romania sustainability bond investment (Romanian) (PDF, 0.68MB)

Project description

Project objectives

The project contributes to the resilience of a systemic bank in Romania, facilitates capital market development in the country, expands access to finance for SMEs from underdeveloped regions, and supports the first ever sustainability bond framework launched by a Romanian bank, that is aligned with the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines of the International Capital Market Association.

Transition impact

ETI Score:63

project delivers transition impact through the Resilient quality, as it (i) promotes capital market development in Romania by introducing the first sustainability bond issued out of the country and through facilitating the expansion of the market for new instrument types and for instruments in local currency; and (ii) contributes to RBRO's bail-in-able funding base and strengthens the bank's resilience and regulatory compliance. The project also supports the Inclusive transition quality by supporting the inclusion of underserved segments, including SMEs from underdeveloped regions, through enhanced access to finance.

Client information

RAIFFEISEN BANK SA

Raiffeisen Bank S.A. is the fifth largest bank in Romania with a market share of 9.4% in terms of total assets as of year-end 2021. On a consolidated basis, Raiffeisen Bank reported total assets of EUR 12.1 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 (Stable) by Moody's. Raiffeisen Bank International AG owns 99.92% of Raiffeisen Bank S.A.

EBRD Finance Summary

RON 279,825,000.00 (ca. EUR 56.9 million) for RON-denominated bonds

EUR 20,000,000.00 for EUR-denominated bonds

Total project cost

RON 1,195,425,000.00 (ca. EUR 242.8 million) for RON-denominated bonds

EUR 300,000,000.00 for EUR-denominated bonds

Additionality

The project is additional in terms of financing structure and risk mitigation. Additionality derives from supporting the successful issuance in a still shallow capital market and in a post-pandemic environment destabilised by inflationary pressures and the war on Ukraine. The Project also involves promoting the incorporation of best market standards and practice in RBRO's Sustainability Bond Framework.

Environmental & Social Summary

Categorised FI (ESP 2019). Raiffeisen Bank S.A. is an existing client of the Bank. RBRO will be required to continue to apply its current E&S framework to ensure on-going compliance with the EBRD's Performance Requirements 2, 4 and 9 and to provide annual E&S report to the EBRD. 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.

Company Contact Information

Romulus Mircea
romulus.mircea@raiffeisen.ro
+40 733 104 293
+40 21 230 0700
http://www.raiffeisen.ro
Calea Floreasca 246D Bucuresti 014476

PSD last updated

31 Oct 2023

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 the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Raiffeisen Romania sustainability bond investment

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)