EBRD Invests In Subordinated Bonds Of Raiffeisen Bank In Romania


By Olga Rosca

The EBRD, alongside IFC, a member of the World Bank Group, has invested RON 240 million about €50 million(US$55.82 million) in a subordinated bond issued in a private placement by Raiffeisen Bank in Romania, the first local currency subordinated bond in the market.

The subordinated bond will be included in Raiffeisen Bank’s own funds following approval of the National Bank of Romania. The funds will strengthen and optimise the capital structure of Raiffeisen, a systemically important bank in Romania.

The subordinated bonds will be listed on the Bucharest Stock Exchange, supporting local currency listed instruments in the local market.

The investment will also help Raiffeisen Bank support investments in the green economy in line with the EBRD Green Economy Transition approach.

Raiffeisen Bank S.A., a subsidiary of Raiffeisen Bank International, is the fifth largest bank in Romania with a market share of 10.6 per cent and 10 per cent by loans and deposits, respectively as at year-end 2018. The bank provides universal banking services to private individuals, small businesses and corporates in Romania

The EBRD is a leading institutional investor in Romania and to date has invested over €8.5 billion in the country, primarily in the private sector.

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