Alpha Bank Romania Covered Bond

Location:

Romania

Project number:

50564

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

27 Feb 2019

Status:

Signed

PSD disclosed:

15 May 2019

Translated version of this PSD: Romanian

Project Description

A EUR 40 million investment in the covered bonds issued by Alpha Bank Romania SA, as part of a total aggregate issuance of EUR 200 million, under the bank's Covered Bond Programme of EUR 1 billion. These are the first covered bonds issued by a Romanian financial institution and will be listed on the Luxembourg Stock Exchange and on the Bucharest Stock Exchange.

Through this project, the Bank supports the issuance of innovative capital market instruments, such as covered bonds, in Romania. It follows an extensive policy dialogue to help revise the local covered bond legislative framework and align it to the EU best practices.

Project Objectives

The covered bonds will help Alpha Bank Romania SA strengthen and diversify its funding sources, and will contribute to improving its balance sheet structure. With this investment, EBRD is also seeking to support the development of the capital markets and encourage other local banks to utilise covered bonds in order to diversify their funding structure, implement innovative products such as covered bonds, attract long-term resources and secure adequate liquidity profiles.

Transition Impact

The investment contributes to the "Resilient" and "Well-governed" transition qualities by contributing to the develoment of capital markets and allowing the bank to strengthen and diversify its funding sources, resulting in better balance sheet structures and maturity mismatch management. In addition, the Bank is supporting the issuance of innovative capital market instruments in Romania such as covered bonds, allowing the development of new funding sources for the Romanian financial institutions and facilitating the development of the capital market.

Client Information

ALPHA BANK ROMANIA SA

Alpha Bank Romania SA is a commercial bank incorporated in Romania providing universal banking services. As of June 2018, Alpha Bank Romania SA has a 3.6% market share in terms of total assets (8th largest bank in Romania). The bank is rated Ba2 (stable) by Moody's (long-term local and foreign currency deposits) whereas the first issuance under the Covered Bond Programme is expected to receive a Baa2 rating.

EBRD Finance Summary

EUR 40,000,000

Total Project Cost

EUR 200,000,000

Environmental and Social Summary

Categorised FI (ESP 2014). Alpha Bank Romania SA is in compliance with the EBRD's Performance Requirements (PRs) 2, 4 & 9 under existing exposures. Alpha Bank Romania SA is satisfactorily managing environmental and social risks within the bank's existing portfolio by applying the EBRD's Environmental and Social Risk Management Procedures and has submitted Annual Environmental and Social Reports to the Bank. For this transaction Alpha Bank Romania SA will be required to continue to comply with PRs 2, 4 & 9, adhere to the EBRD's environmental and social requirements and submit Annual Environmental and Social Reports to the Bank.

Technical Cooperation

None.

Company Contact Information

Alpha Bank Romania SA
ir@alphabank.ro
+40 (21) 455 7373
www.alphabank.ro/contact
237 B Calea Dorobantilor, 1st District 010566 Bucharest Romania

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