Romania - Bond Market Framework

Location:

Romania

Project number:

45399

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

11 Jun 2013

Status:

Board Approved

PSD disclosed:

03 Jul 2013

Sub-projects signed under this framework

Translated version of this PSD: Romanian

Project Description

The EBRD approved a Financial Institutions Bond Market Framework (the “Framework”) for the Bank to invest in medium to long-term negotiable debt securities, issued by banks or non-bank financial institutions (“Participating Financial Institutions” or “PFIs”) in Romania.

These include: senior, secured (covered bonds, asset-guaranteed bonds), unsecured and medium-term note programs in an amount of up to EUR 150 million.

The Framework is in line with the objectives of the Local Currency and local Capital Market Development Initiative launched by EBRD in May 2010 and will contribute to:

(i) developing the Romanian corporate bond market which is at an early stage of development;

(ii) supporting the diversification of funding sources of the PFIs; and

(iii) improving the maturity structure of the balance sheet of the PFIs by extending the tenor of liabilities to better match the maturity of the underlying assets.

Transition Impact

Transition impact is expected to derive from:

  • Market expansion
    The Framework will contribute to the development of the corporate bond market in Romania by fostering successful non-sovereign issues that are large enough to be liquid and attract institutional investors.
  • Demonstration of restructuring
    Facilitating bond issues by financial institutions, in either local or foreign currency, will enable issuers to diversify funding sources and address asset-liability mismatches.
  • Setting standards
    Accessing the bond market will require issuers to meet high standards for transparency and reporting.

The Client

The Framework will be available for commercial banks and non-bank financial institutions in Romania.

EBRD Finance

EUR 150 million.

Environmental Impact

Categorised FI. PFIs will be required to comply with EBRD Performance Requirements 2 and 9 and the EBRD Environmental and Social Procedures for Corporate Lending. This will include adherence to the EBRD's Environmental and Social Exclusion Lists and submission of annual environmental and social reports to the Bank.

Technical Cooperation

None.

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Text of the PIP

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