EBRD Fuels Estonia’s Green Future with €20M Investment in Coop Pank’s First Covered Bond

EBRD Fuels Estonia’s Green Future with €20M Investment in Coop Pank’s First Covered Bond

(IN BRIEF) The EBRD has invested €20 million in Coop Pank’s first-ever covered bond, listed on the Dublin Stock Exchange, to support the development of Estonia’s emerging capital markets and green financing initiatives. This investment marks the first EBRD transaction with Coop Pank—a fully Estonian-owned bank—and is aimed at optimizing the bank’s balance sheet while financing green projects in accordance with the EBRD’s Green Economy Transition criteria. The bond issuance, which was 4.7 times oversubscribed, reflects strong private-sector confidence amid challenging geopolitical and economic conditions. This transaction is part of the EBRD’s broader commitment to strengthening Baltic capital markets, where it has already invested €1.2 billion across 123 projects.

(PRESS RELEASE) LONDON, 27-Mar-2025 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is bolstering Estonia’s capital markets by investing €20 million in the inaugural covered bond issued by Coop Pank, the country’s fifth-largest bank. Listed on the Dublin Stock Exchange, this bond marks Coop Pank’s first major venture into capital market issuances and represents the EBRD’s initial transaction with the 100% domestically owned bank. The investment is designed to nurture Estonia’s budding covered bond market and enhance Coop Pank’s balance sheet.

In a move that underscores its commitment to sustainability, Coop Pank has committed to allocating 100% of the proceeds from this deal to finance green projects that meet the EBRD’s Green Economy Transition criteria. This strategic use of funds is set to promote green lending and support Estonia’s transition to a greener economy.

Tomas Kairys, EBRD Head of the Baltic States, remarked, “We are delighted to support Coop Pank’s landmark issuance and assist a new local partner in accessing capital markets amid geopolitical and macroeconomic uncertainties. Strengthening capital markets in the Baltic region is a key priority for us, and we eagerly look forward to Coop Pank’s future issuances.” Reflecting on the successful launch, Coop Pank’s CFO, Paavo Truu, highlighted that the issue was 4.7 times oversubscribed, a testament to the growing confidence in Baltic capital markets. He added that each successful issuance not only solidifies Coop Pank’s funding strategy but also encourages the broader use of capital market instruments in the region.

To date, the EBRD has invested €1.2 billion in Estonia across 123 projects, reinforcing its role as a leading institutional investor in the country.

Media contact:
Email: media@ebrd.com

SOURCE: EBRD