BCR is listing its first green bonds on Bucharest Stock Exchange worth RON 500mn

10/18/2021

Banca Comerciala Romana (BCR) is listing on October 19 its first green bonds on Bucharest Stock Exchange (BVB) Main Market, worth RON 500mn. The bonds will be traded under the stock exchange symbol BCR28A. The listing of BCR's first green bonds comes in less than half a year from the admission to trading of the previous bonds, from May 31, worth RON 1bn, the biggest bond issuance from BVB. Thus, BCR will have available for trading, starting with October 19, three bond issues with a total value of RON 2.1bn.

"We are committed to an integrated responsible business approach in all solutions we propose to our clients, but also through a constant dialogue with Romania SA and Romania SRL. We believe that this is where the sustainable transformation of the economy starts and we are here to support the business environment with all the necessary information for sustainable development, offering them the most suitable structures and fit financing sources. The value of BCR's bond issue demonstrates, once again, the ability of the capital market and investors active in this market to support sustainable initiatives", stated Sergiu Manea, CEO of Banca Comerciala Romana.

"We are glad that the Romanian capital market supports the implementation of visionary and, most importantly, sustainable projects from the ESG perspective. The banking sector is one that also promotes and supports the Romanian economy, and the fact that BCR has successfully concluded its first green bond issue is a strong signal for the entire financial community. Thus, green financing instruments are becoming increasingly relevant for both issuers and investors, and the Romanian capital market is in line with European trends. Following this new issue, BCR will have bonds worth RON 2.1bn available for trading as of tomorrow, a value that shows the potential of the Bucharest Stock Exchange to support the need for financing from the local economy", said Adrian Tanase, Bucharest Stock Exchange CEO.

BCR senior preferential bonds have a maturity of 7 years, an annual interest rate of 5% and a nominal value of RON 500,000. The bonds received an expected long-term BBB+ rating from Fitch. The bonds were bought by pension funds, asset management firms, insurance companies and credit institutions, European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC). The BCR28A bond issue is part of BCR's efforts to align with the ESG (Environmental, Social and Governance) criteria, to generate sustainable economic development, encourage environmentally responsible behavior and reduce social inequalities.

BCR is at its fourth bond issue listed on BVB, the first one already reaching maturity. BCR26, the second bond issue worth RON 600mn, is traded since December 2019. BCR28, the third bond issue worth RON 1bn, is being traded since the end of May this year.

BCR, a member of Erste Group, is one of the most important financial groups in Romania, including universal banking operations (retail, corporate & investment banking, treasury, and capital markets), as well as companies in the leasing market, private pensions and housing banks.