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EBRD invests in Romania’s first sustainability bonds

The European Bank for Reconstruction and Development (EBRD) has invested 131 million Romanian lei (26 million euros equivalent) in Romania’s first sustainability bonds, issued by Raiffeisen Bank Romania.

Raiffeisen – a subsidiary of the Austria-based group Raiffeisen Bank International – raised 500 million Romanian lei (102 million euros equivalent), in a private placement settled on 17 August, to finance sustainable projects. The senior non-preferred sustainability bonds have a five-year maturity and are expected to be listed on the Luxembourg Stock Exchange and on the Bucharest Stock Exchange.

By facilitating the expansion of the market for senior non-preferred and senior preferred bonds, as well as for instruments denominated in local currency, the investment will promote capital market development in a regional environment impacted by Russia’s war on Ukraine and inflationary pressures.

The funds raised will be used to finance sustainable projects, according to the eligibility criteria described in the Bank’s Framework for Sustainability Bonds. International standards define Sustainability Bonds as loans used to finance projects that bring clear environmental and socio-economic benefits.

The transaction will also build inclusiveness by facilitating the financing of small and medium-sized enterprises (SMEs) in underdeveloped regions of Romania, said the EBRD.

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