IFC’s Investment to Boost Green Housing, Strengthen Capital Markets in Romania

A new investment will help expand green housing finance in Romania while bolstering the country's banking system and capital markets, with IFC investing Romanian Leu 95 million (approximately $22 million) in senior preferred green bonds issued by Banca Comercială Romana S.A. (BCR).

This placement is the first-ever senior preferred bond issuance by BCR, Romania's second-largest bank. The bonds qualify for the European Union's Minimum Requirement for own funds and Eligible Liabilities (MREL) one of the key tools to enhance banks' resolvability. This is also BCR's first issuance of green bonds under the Erste Group's Sustainability Framework. An umbrella framework, it will allow Erste Group to issue sustainable finance instruments to finance or refinance projects with environmental and/or social benefits. The proceeds from IFC's investment will support green mortgages, helping improve housing conditions in Romania.