Allen & Overy advises Raiffeisenbank on EUR500m sustainable notes issuance

A sum equivalent to the net proceeds will be used to finance or re-finance loans to projects and activities that promote climate-friendly and other environmental or sustainable purposes. It is a transaction which is unique in the entire CEE region.

Raiffeisenbank established the programme in close cooperation with A&O in November 2020, with the last update made in September 2022. The notes were issued under German law, but their status as senior non-preferred and MREL-eligible instruments is also governed by the applicable Czech rules. The notes were accepted for trading on the Luxembourg Stock Exchange. Raiffeisenbank is also one of the first Czech issuers to implement the noteholders’ certification procedures as approved by the International Capital Market Services Association and implemented by both Euroclear and Clearstream.

The A&O team on this transaction was led by partner Petr Vybíral in close cooperation with senior associate Tomáš Kafka and junior lawyer Jan Mourek. German law advice was provided by partner Stefan Henkelmann and counsel Jens Nollmann.

Mr Maroš Hrnčiar, Head of Asset & Liability Management of Raiffeisenbank, commented: “After a challenging last year accompanied by uncertainty in the financial markets, we managed to issue the largest MREL bond issue in Raiffeisenbank's history. The entire transaction, including the incorporation of the new legal requirements into the transaction documentation, was again successfully guided by the A&O team from a legal perspective. Also thanks to our highly efficient cooperation, we met the demanding regulatory requirements for capital and eligible liabilities ahead of time and, moreover, set a precedent for any other similar transactions from our region in international markets.”

Partner Petr Vybíral added: “We are extremely happy to have had the opportunity to once again support our long-standing client, Raiffeisenbank, on this important transaction. The recently unstable international capital markets, coupled with legislative changes introduced last year, exposed us to some unprecedented challenges, which we are proud to have helped our client to successfully deal with.”