​Recently, an agreement was signed between the European Investment Fund and Raiffeisen Bank Romania with record guarantees for the amount of 400 million euros. I spoke with Mircea Busuicanu, Vice President of Risk, about what the bank will do with the two guarantee schemes, the concept of sustainable lending and how it works, and the bank’s financial results for the first 9 months of the year. “As before, and for the first 9 months of 2023, we continued to finance the real sector of the economy. In addition, starting this year, we proposed a new approach to the banking industry by launching Banking 1:1, a strategic direction with a focus on personalized services, transparent and relevant dialogue on how people can make a financial plan for a better future, more stable, safer “, Mircea Busuichanu stated.

You already have data on the results of the bank’s work for 9 months of this year. What do they testify to?

Mircea Busuicanu: This indicates the good performance of Raiffeisen Bank in Romania. As before, and for 9 months of 2023, we continued to finance the real sector of the economy. In addition, starting this year, we proposed a new approach to the banking industry by launching Banking 1:1, a strategic direction with a focus on personalized services, transparent and relevant dialogue on how people can make a financial plan for a better future, more stable, safer .

In particular, regarding the results, we ended the first 9 months of the year with total assets of 67.5 billion lei, which is 9% more than in the same period last year. Savings of our customers increased by 6% year-on-year as a result of the increase in the balance of term deposits in all business segments. In lending, the growth was 4%, combined for all market segments: individuals, corporations and SMEs, with the latter recording the highest growth (+8% year-on-year), which had a positive impact on our participation in government programs such as IMM Invest.

Recently, an agreement was signed between the European Investment Fund and Raiffeisen Bank Romania with record guarantees of EUR 400 million. Can you give us more details?

Mircea Busuicanu: The support from the European Investment Fund, which has granted us two guarantee schemes worth 400 million euros, moreover, the highest limit in the market, is an honor for us and a proof of our performance in this field. We have a long history of working with the European Investment Fund and are delighted to have the opportunity to continue this successful partnership with two new financial instruments aimed at SMEs. In addition, in the last 10 years we have launched 7 such programs in Romania, through which we have provided financing worth more than 1 billion euros, mainly for SMEs.

What is Raiffeisen Bank’s plan for two €400m guarantee schemes?

Mircea Busuicanu: We will use these guarantee schemes to provide more than €600 million in local market financing to SMEs over the next 2 years. Two programs are aimed at the field of sustainable development with an emphasis on supporting SMEs in the transition to a green economy andCompetitiveness, by accessing more favorable financing conditions, such as: a smaller advance or a longer financing period. In addition, loans granted under two new programs supported by PNRR and Invest EU will receive a preferential interest rate, which will facilitate access to financing.

Raiffeisen Bank also recently launched the first issue of Eurobonds for 300 million euros. What will the bank do with the raised funds?

Mircea Busuicanu: Indeed, at the beginning of October, for the first time for the Romanian banking sector, we launched the first issue of stable non-preferential Eurobonds on the international capital market. The EUR 300 million issue, with a fixed coupon of 7% for the first three years and a final maturity of four years, attracted strong interest from around 100 investors from CEE, UK, US, Germany, Austria and Switzerland who wanted to participate with them. IFC and EBRD in this deal and placed subscription orders for a total amount of more than one billion euros.

We will direct the collected funds to finance permanent projects. At least 50% of the funds will be directed to financing social projects – mainly financing small and medium-sized enterprises in underdeveloped regions at the national level and expanding access to basic health care, education and infrastructure services. The difference will be used to finance projects that support the green transition – green buildings, renewable energy projects, energy efficiency projects, ecological transport and agriculture, pollution prevention and control projects, circular economy, sustainable water management.

The bank’s focus in the next period is likely to be on the sphere of stable lending. How did you prepare for it and what should companies know to get green credits more easily?

Mircea Busuicanu: Supporting sustainable economy projects is part of our list of priorities, whether it is the segment of corporate clients or the financing of small and medium-sized businesses, to which we provide, for example, loans for the purchase of energy-efficient equipment or business financing. at the beginning of the journey, but which set the goal of developing according to the principles of a cyclical economy with the help of special programs such as Factory by Raiffeisen or ClimAccelerator.

We are the first bank to issue environmental bonds and sustainability bonds on the capital market in Romania in 2021 and 2022, respectively. In two years, we have issued 6 bonds with a total nominal value of €673 million.

We currently have over €500 million in green credit stock and we are making steady progress, adding €150-200 million to our portfolio in this area in the last year alone.

An aspect that companies should take into account is that in the future success will be measured not only by added value in the economy, but also by an ever-lower impact on the environment and the resources used. Companies will receive an ESG rating, according to which they will be classified into three categories: green, yellow and brown, depending on which credit conditions will be set.

What are the main areas Raiffeisen Bank Romania will focus on in 2024?

Mircea Busuicanu: Above all, we will continue to focus on maintaining the strength of our balance sheet, on operational sustainability, and we will continue to invest in digitization and improve our infrastructure for sustainable and flexible growth.

We also want to continue to grow at a faster pace than the market average, including the democratization of financial planning that we started this year with the launch of Banking 1:1. At the same time, our long-term goal is to become the most reliable partner of our customers, whom we want to support in the transition to a sustainable business and a circular economy.

The article is supported by Raiffeisen Bank Romania