Background

IBEC acted as an investor in the bond markets of Central and Eastern Europe

The International Bank for Economic Co-operation has taken part in a series of primary market bond deals in Central and Eastern Europe. All bonds meet the criteria of the IBEC development portfolio. The total amount of investments exceeded EUR 37 million.

The Bank has invested in green bonds of one of the largest banks in Slovakia, Tatra banka, a member of the Raiffeisen banking group. This is a debut green issue of Tatra banka, and its proceeds for a total volume of EUR 300 million will be used to finance projects in Slovakia and other EU countries, providing for a positive environmental impact ("Eligible Green Loans"). The bonds were issued in compliance with the Green Bond Principles of the International Capital Market Association, and contribute to the country’s implementation of Integrated National Energy and Climate Plan 2021-2030, mandated by the European Union (EU) for each of its member states. The maturity of bonds is 7 years, coupon rate – 0.5%. The demand for the deal was significant, not to the least extent due to the participation of international development banks. According to the arrangers, successful bond placement will contribute to the development of the European market of green financial instruments.

IBEC also has taken part in the government securities issues of Slovakia and Romania. The Bank has acquired 15-year international sovereign bonds of the Slovak government with a coupon of 0.375% and total issue volume EUR 1.5 billion.

IBEC has also purchased 12 and 20-year international sovereign bonds of Romania with coupon rates of 2% and 2.75%, respectively.

By participating in primary deals of member states issuers, IBEC, as an investor, contributes to the growing demand for bonds, supports the debt market and takes this opportunity to add bonds that meet the Bank’s strategic investment goals to its treasury development portfolio.

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