Raiffeisen Bank Romania listed on 24 June its third green bond on the Bucharest Stock Exchange (BVB) worth 106 million euros. Including the previous two issues from 2021, the total value of the three offers listed exceeds 400 million euros.
The non-preferential senior green bonds have a maturity of 5 years and an annual fixed interest rate of 8.927% per year. Raiffeisen Bank issued and sold under a private placement to 13 bondholders and legal entities a number of 1,000 bonds with a nominal value of 106,000 euros each – visibly not for retail investors.
Such green bonds issued by banks are rarely traded on the BVB market where they are listed, and the actual yield can not exactly be known as they are issued in private placements at prices that may be below or above par. The buyers are the open-end investment funds, often managed by the asset management arms of the same financial groups that operate the banks.