Early Warning System

Countries

Romania

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

International Finance Corporation (IFC)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Active

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Apr 30, 2021

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

RAIFFEISEN BANK SA

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Finance

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 160.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Loan Amount (USD)

$ 160.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Campaign Documents

Banktrack: Raiffeisen Bank International

Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 13, 2024

Disclosed by Bank May 18, 2021

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed project is to invest up to US$160 million equivalent (in RON and/or EUR) for IFC’s own account in Minimum Requirement for Own Funds and Eligible Liabilities (MREL) eligible bonds (senior preferred, SP, and senior non-preferred, SNP) with up to 7 years tenor to be issued by Raiffeisen Bank S.A. (RBRO or the Bank), in line with its funding plan. It is expected that these bonds will be issued under RBRO's green bond framework and will be the first green bonds issued by a financial institution in the country, with use of proceeds earmarked for climate finance, including green mortgages and buildings, energy efficiency, renewable energy, sustainable agri-finance, and clean transport.

People Affected By This Project

People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

The project is expected to:

i) Help the country achieve its climate change mitigation targets by supporting the first green bond issuance by a financial institution in the country. The entire proceeds from the bond issuance will be used for financing eligible climate finance projects in Romania.
ii) Support the development of capital markets in the country by deepening and diversifying Romania's corporate bond market. Successful issuance of MREL-eligible bonds is expected to encourage other banks, as well as investors, and help develop the market for MREL instruments.
iii) Increase the resilience of the Romanian banking sector by supporting a systemic bank and helping it achieve its MREL-targets.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

International Finance Corporation (IFC)

Under the proposed project, IFC would invest up to US$160 million equivalent in RON and/or EUR denominated MREL-eligible bonds to be issued by RBRO under its green bonds program. IFC would invest up to 40% of each issuance, including both SP and SNP bonds, with actual allocation depending on market interest and resulting from a book-building process.

Financial Intermediary

A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

Raiffeisen Bank SA (Financial Intermediary)

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to the IFC, RBRO is a subsidiary of Raiffeisen Bank International (RBI) and is one of the systemic banks in Romania. The Bank currently ranks 4th by net loans with a 10% market share (as of December 31st, 2020), has an extended history on the local market and offers a wide range of banking services with a nationwide presence. As of December 31, 2020 RBRO served 2.18 million clients, with over 4,900 employees and 333 outlets. The Bank holds a Long-Term Counterparty Risk Rating and a Long-Term Deposit rating of Baa1/negative outlook from Moody’s.

RBI is Austria's second-largest bank with a balance sheet total of EUR166 billion and equity of EUR14.3 billion as of December 31, 2020. RBI's shares have been listed on the Vienna Stock Exchange since 2005. RBI regards Austria, where it is a leading corporate and investment bank, as well as Central and Eastern Europe (CEE) as its home market, operating in 13 countries. RBI has around 45,000 employees which service 17.2 million customers through around 1,800 business outlets. RBI is listed on the Vienna Stock Exchange with a 41.2% free float. RBI holds a Long-Term Counterparty Risk Rating of A3/stable outlook from Moody’s and an Issuer Credit Rating of A-/negative outlook from S&P.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Raiffeisen Bank S.A.
Romulus Mircea
Director of Balance Sheet and Portfolio Management
+40733104293
romulus.mircea@raiffeisen.ro

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org