EBRD invests in Raiffeisenbank Croatia’s first international bond

• EBRD invests €30 million in senior preferred bonds issued by RBA
• Raiffeisen’s Croatian subsidiary will earmark funds for green projects
• Bond is MREL-eligible under EU banking regulations

The European Bank for Reconstruction and Development (EBRD) is investing €30 million in bonds issued by Raiffeisenbank Croatia, also known as RBA, the Croatian subsidiary of Austria’s Raiffeisen Bank International AG, by participating in a publicly placed issuance of €300 million. This represents the first ever international bond issuance by RBA and will be listed on Luxembourg Stock Exchange.  

This is the EBRD’s fifth purchase of a senior preferred bond eligible under the European Union’s Minimum Requirement for own funds and Eligible Liabilities (MREL) issued by a local financial institution in Croatia, and its third purchase related to RBA.

The two previous EBRD investments were in privately placed RBA bonds issued under the same MREL-eligible programme: €39 million on 4 November 2021 in an issuance of €130 million, and €60 million on 30 September 2022 in RBA’s first sustainability bond issuance, totalling €200 million.

EBRD Director for Central Europe, Victoria Zinchuk, said: “We are very happy to be one of the anchor investors in this first international public issuance by Raiffeisenbank Croatia. This successful international placement will further expand the overall pool of investors in the Croatian banking sector. We are very pleased to be part of this success story.”

The new funding will help RBA achieve regulatory compliance, diversify its funding base and increase its loss-absorption capacity and crisis resilience. The proceeds will also further promote the EBRD’s green agenda in Croatia. RBA will allocate an amount equal to 120 per cent of EBRD investment to its own lending to green projects, mainly in the fields of renewable energy, green buildings and energy efficiency, which would be eligible under the EBRD’s Green Economy Transition (GET) approach.

To date, the EBRD has invested more than €4.4 billion in Croatia in 239 projects.