EBRD Invests €20 Million in Bank Pekao’s Debut Green Eurobond Issuance to Support Sustainable Finance in Poland

EBRD Invests €20 Million in Bank Pekao’s Debut Green Eurobond Issuance to Support Sustainable Finance in Poland

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has committed €20 million to participate in the debut Eurobonds issued by Bank Polska Kasa Opieki, commonly known as Bank Pekao, as part of its €500 million public placement of senior non-preferred bonds. These bonds will be listed on the Luxembourg Stock Exchange and represent Bank Pekao’s inaugural international and green bond issuance. The funds raised from this issuance will enhance Bank Pekao’s financial resilience and diversify its funding sources. They will be allocated to finance or refinance green projects in accordance with Bank Pekao’s Sustainable Finance Framework, reinforcing the bank’s dedication to sustainable finance in Poland. Bank Pekao has a history of involvement in the sustainable finance market, facilitating green and sustainable debt securities for clients and investing in such bonds. By issuing green bonds, the bank contributes to Poland’s green financial transformation, aligning with the EBRD’s green economy transition initiatives in the country. Bank Pekao, a key EBRD partner, is one of the largest financial institutions in Central and Eastern Europe and the second-largest bank in Poland, with significant retail and corporate operations. The EBRD’s investment supports the bank’s commitment to sustainable finance and furthers the EBRD’s role as a leading institutional investor in Poland, where it has invested over €13.8 billion in 515 projects since 1991, primarily in the private sector, with a substantial portion in financial institutions.

(PRESS RELEASE) LONDON, 23-Nov-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) has invested €20 million in debut Eurobonds issued by Bank Polska Kasa Opieki, also known as Bank Pekao, by participating in its €500 million public placement of senior non-preferred bonds, to be listed on the Luxembourg Stock Exchange. This is Bank Pekao’s first international and first green bond issuance.

The new funding will help strengthen Bank Pekao’s resilience and diversify its funding base. The bond proceeds will be used to finance or refinance green projects, in whole or in part, under Bank Pekao’s Sustainable Finance Framework. Bank Pekao has been active in the sustainable finance market for years, both by organising the issuance of green and sustainable debt securities for clients and by acting as an investor in such bonds. By issuing green bonds, the bank has further expanded its green mandate in Poland, contributing to green financial transformation efforts in the country.

The investment will further promote the EBRD’s green economy transition activities in Poland.

Bank Pekao, a long-standing partner of the EBRD, is one of the largest financial institutions in central and eastern Europe and the second-largest bank in Poland, with a leading retail and corporate franchise. It is listed on the Warsaw Stock Exchange. Powszechny Zakład Ubezpieczeń (PZU) owns the biggest minority stake, at 20 per cent, followed by the Polish Development Fund (PFR) with 12.8 per cent, while around 50 per cent of shares are traded freely.

The EBRD is among the leading institutional investors in Poland. Since the start of its operations in the country in 1991, the Bank has invested more than €13.8 billion in 515 projects in Poland. Most of these investments have been in the private sector, with more than €4 billion invested in financial institutions.

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SOURCE: EBRD