IFC invests $20m in Romania's first green bond
The first ever green bond to be issued by a financial institution in Romania will boost access to climate finance and help enhance the resilience of the banking sector while strengthening the country's capital markets.
The International Finance Corporation is investing $20 million equivalent in local currency bonds, placed by Raiffeisen Bank. The investment is the first issuance of a green bond by a financial institution in the country, and also IFC's first investment in bonds that are expected to qualify for the European Union's Minimum Requirement for own funds and Eligible Liabilities, being only the second issuance of such bonds in Romania.
While the bonds have been issued in compliance with RBRO's Green Bond Framework, 100% of the proceeds — including IFC's investment — will be used only for eligible climate finance projects in five key areas: green buildings, renewable energy, energy efficiency, clean transportation, and sustainable agriculture.