EBRD Invests in UniCredit’s Green Covered Bond to Promote Sustainable Finance in Czech Republic

EBRD Invests in UniCredit’s Green Covered Bond to Promote Sustainable Finance in Czech Republic

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has invested €45 million in UniCredit Bank Czech Republic and Slovakia a.s. (UCBCS) to support their inaugural green covered bond issuance. The bond, with a five-year maturity, will be listed on the Luxembourg Stock Exchange. This marks the EBRD’s second transaction in the Czech Republic’s financial sector since re-engaging in the country in 2021. The investment aims to promote green lending standards, enhance UCBCS’s capacity to support green projects, and contribute to capital market development in the Czech Republic and the Slovak Republic. The EBRD has previously invested approximately €1.38 billion in 119 projects in the Czech Republic.

(PRESS RELEASE) LONDON, 4-Jul-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, has announced a €45 million investment to support UniCredit Bank Czech Republic and Slovakia a.s. (UCBCS) in issuing their first green covered bond. The bond will have a five-year maturity and will be listed on the Luxembourg Stock Exchange.

This marks the EBRD’s second transaction in the Czech Republic‘s financial sector since re-engaging in the country in 2021. By investing in UCBCS’s green covered bond, the EBRD aims to promote high standards in green lending to the real sector, advancing its green agenda in both the Czech Republic and the Slovak Republic.

Through this investment, the EBRD aims to bolster the resilience of a systemic financial institution in the Czech Republic, enabling it to better support green projects in both countries. This initiative aligns with the EBRD’s commitment to promoting sustainable development and supporting capital market development, particularly during a time of increased instability and volatility for issuers in central and eastern Europe.

Melis Ekmen Tabojer, EBRD Director, EU Banks and Structured Finance, said: “This is a milestone transaction for both UniCredit Bank Czech Republic and Slovakia, and the EBRD. The Bank is proud to contribute to the first green covered bond issued by a Czech bank, facilitating green lending in the Czech Republic and the Slovak Republic. With this investment, the EBRD helps UCBCS to realise its strong green ambition and supports capital market development at a time of increased instability and volatility, particularly for central and eastern European issuers.”

To date, the EBRD has invested approximately €1.38 billion through 119 projects in the Czech Republic.

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SOURCE: EBRD