Bulgarian Fibank plans first green bond of 300 million euros

by MMC
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September 12 (SeeNews) – Bulgaria’s leading investment bank (BUL:FIB) said it has started assessing investor interest in the possible issuance of a first green bond of 300 million euros ($321.6 million), which would be used to finance green and sustainable projects under the green finance framework recently released by the lender.

First Investment Bank, or Fibank, has chosen Citibank London, Landesbank Baden-Wuerttemberg of Germany and Raiffeisen Bank International of Austria as joint bookrunners, which have begun holding a series of meetings with investors, said Monday the Bulgarian bank in a filing to the stock exchange.

You can download the ESG and Sustainability Report 2022 Bulgaria here

Subject to market conditions and investor interest, Fibank may choose to issue an offering of MREL 3NC2 eligible senior preferred green bonds, which will be rated by Fitch Ratings, it added. Citibank London and Raiffeisen Bank International will also act as structuring advisors if the offer goes through.

In a separate statement Monday, Fitch Ratings said it assigned an initial long-term rating of “B(EXP)” and a recovery rating of ‘RR4’ for Fibank’s planned inaugural senior note issuance, which is expected to be listed on the Luxembourg Stock Exchange.

Proceeds from the planned offering will enable Fibank to manage a portfolio of green finance instruments including bonds, mortgages, investment loans, project finance and revolving credits, limited to purely specialized companies or to those that generate more than 90% of their income. activities eligible for Fibank’s Green Finance Framework.

Project selection criteria exclude investments in sectors such as defense and armaments, nuclear and fossil energy, mining, activities related to pure internal combustion engines (ICE), as well as alcohol, tobacco and gambling.

Published in August, Fibank’s Green Finance Framework follows the Green Bond Principles formulated in 2021 by the International Capital Market Association as well as the Green Loan Principles which were published in February this year and are administered by the Loan Market Association , a financial organization based in the United Kingdom. promote syndicated loans in Europe, the Middle East and Africa.

Fibank has put in place the necessary framework to align its financing strategy with its sustainability commitments, diversify its investor base and seek socially responsible investors. In its current formulation, the framework also takes into account the United Nations Sustainable Development Goals and, where possible, the EU Taxonomy, a classification of sustainable activities established by the EU in the context of the Green Deal. Elements of the EU’s proposed regulation on the bloc-wide green bond standard are also reflected in the framework.

($ = 0.9328 euros)

First Investment Bank AD is one of the largest banks in South-Eastern Europe. You can download our SEE Top 100 ranking here or subscribe to our free Top 100 newsletter here

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