EBRD supports landmark MREL eligible bond issuance in Western Balkans

This article is brought to you in association with EBRD.

• EBRD invests RSD 2.3 billion in landmark bond issuance by Raiffeisen Banka ad Beograd
• New standard set for raising MREL-eligible funding in Serbia and the wider Western Balkans
• Investment contributes to central bank’s strategy on dinarisation

The European Bank for Reconstruction and Development (EBRD) is investing RSD 2.3 billiion (equivalent €19.6 million) in the debut issuance of debt securities in Serbia of Raiffeisen Banka ad Beograd, marking the first issuance in the Western Balkans of debt that meets the requirements for minimum requirement for own funds and eligible liabilities (MREL).

It is the Bank’s first MREL-eligible transaction in Serbia where the EBRD supported Raiffeisen Banka ad Beograd’s RSD 6 billion  issuance (equivalent to €51,20 million) of unsecured MREL-eligible bonds.

The financing will support lending to micro, small and medium-sized enterprises (MSMEs), a market instrumental for the sustainable development of the Serbian economy. At least 30 per cent of the EBRD’s investment will be dedicated to green projects under the EBRD’s Green Economy Transition approach, further supporting Serbia’s green transition.

This issuance, conducted through a placement to international financial institutions and local professional investors based on a prospectus which has been duly approved by the Serbian Securities Commission, sets a new standard for raising MREL-eligible funding for local banks in Serbia and the wider region.

The investment in local currency bonds aligns with the National Bank of Serbia’s strategy on dinarisation and strengthens Raiffeisen Banka ad Beograd’s compliance with regulatory requirements as part of the EBRD’s commitment to enhancing financial sector resilience. The bonds will be listed on the Belgrade Stock Exchange, contributing significantly to the development of the local capital market.

Raiffeisen Banka ad Beograd’s initiative sets a precedent for other local banks, encouraging the adoption of robust financial standards and enhancing overall market stability. This collaboration between the EBRD and Raiffeisen Banka ad Beograd marks a significant milestone in the ongoing development of Serbia’s financial sector.

Raiffeisen Banka ad Beograd was established in 2001 as one of the first greenfield foreign banks in Serbia. It is a large international bank catering to both corporate and retail clients.

The EBRD is a leading institutional investor in Serbia and has invested more than €9 billion through 354 projects, most of which have supported the private sector. The Bank’s work in Serbia focuses on developing private sector competitiveness, green energy transition and sustainable infrastructure.