Erste Bank Croatia has successfully concluded the issue of the inaugural, so-called green preferred senior bond on the international capital market, in the total amount of EUR 400 million, maturing in five years, with a call option after the expiry of four years. The bond issue was realised at an annual interest rate of 4.875% and a yield of 4.901%. The bond will be listed on the Official Market of the Vienna Stock Exchange, and BNP Paribas, Citigroup, Erste Group AG and Societe Generale were the joint issue agents.

The bond is being issued in a green format under the Erste Group Sustainable Finance Framework and is the first green bond issue of any issuer in the Republic of Croatia. This issue was realised in order to fulfil the MREL requirement (minimum requirement for own funds and eligible liabilities), as an integral part of the EU regulatory framework, and the funds raised will help further improve the diversification of the Bank's funding sources, while being used to promote green and sustainable investments and projects. It is important to note that this is the eighth issue of Erste Bank Croatia bonds in the domestic and international capital markets and with this the Bank has once again confirmed its position as the most active non-government bond issuer in Croatia.

The issue was designed for institutional investors in the international and domestic market, and the demand was the highest ever given the planned amount of the issue for this type of securities issued by CEE credit institutions, exceeding EUR 3 billion at one point. Investment funds accounted for 68% of the final allocation, followed by insurance companies with 11% and banks with 9%, while other categories of investors accounted for 12%. More than 200 highly geographically diversified institutional investors participated in the issue, including 52% from the UK, and 18% from Germany, Austria and Switzerland (so-called DACH region).