Bank Zachodni WBK S.A. Equity Investment

Project Description

The EBRD has been invited to consider an equity investment in Bank Zachodni WBK S.A. (“BZ WBK”) of up to €80 million by subscribing for new shares in BZ WBK through a capital increase.  

The project would support the merger of BZ WBK and Kredyt Bank S.A., a medium sized Polish bank and a subsidiary of the Belgian KBC Group, and the creation of the third largest bank in the country. Upon completion of the merger, the EBRD would hold a minority equity stake in BZ WBK.

Transition Impact

Through the project, the EBRD will support a strategic acquisition in Poland with the aim to foster competition in the nationwide, top -tier segment. Moreover, the project is expected to provide an example of successful in-market merger in the Polish banking sector. The merger of KB with BZ WBK will deploy and transfer Banco Santander's skills in merger integration, demonstrating within the Polish market technical integration, value creation, and best practices with regard to any rationalization that may be required.

The Client

BZ WBK is a universal Polish bank providing a full range of services for individual customers, SMEs and large companies.  With €13.6 billion of total assets, it ranks 5th in Poland. BZ WBK is 96.25% owned by Banco Santander, S.A. and listed on the WSE.

BZ WBK is an existing client of the EBRD, having previously benefited from loans and credit lines totalling €165 million including the subordinated Eurobond of €100 million issued to the EBRD in 2010.

Banco Santander, S.A. is the largest retail and commercial bank in Europe, with the largest branch network world-wide. Its international diversification makes it less vulnerable to the eurozone crisis and allows it to extend its operations in CEE – the region from which some Western banks are being forced to withdraw because of troubles in their home markets.

EBRD Finance

Equity participation in the share capital increase of BZ WBK in the amount of up to €80 million equivalent in Polish Zloty.

Project Cost

Unspecified.

Environmental Impact

BZ WBK implemented environmental and social requirements in the context of previous EBRD financings and is thus compliant with PR 2 (Labour and Working Conditions) and PR 9 (Financial Intermediaries), which also requires adherence to the EBRD’s Environmental and Social Exclusion List and Referral List. After the merger of KB with BZ WBK is completed, the environmental and social requirements will need to be applied across the merged bank’s entire portfolio including KB.

Technical Cooperation

None.

Company Contact

Peter Greiff, Corporate Communications Director
Banco Santander, S.A.
Tel: +34 91289 5207
Email: pgreiff@gruposantander.com

Business opportunities

For business opportunities or procurement, contact the client company.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed.

Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.

Last updated 27 February 2012