- EBRD subscribes for PLN 140 million of Żabka Group’s debut local currency sustainability-linked bond issuance
- Proceeds of Bank’s subscription will support Żabka Group’s capital expenditures in Poland and Romania
- The company commits to reducing its greenhouse gas (GHG) emissions and use of virgin plastic in its food packaging
The European Bank for Reconstruction and Development (EBRD) has subscribed for PLN 140 million in a PLN 1 billion issuance of the first sustainability-linked bond by the Polish modern convenience retailer Żabka Group.
The bonds will be traded on the Catalyst Alternative Trading System of the Warsaw Stock Exchange.
As part of its sustainability-linked bond framework, Żabka Group has committed to reducing the share of virgin plastic in its own-brand packaging by 38 per cent and increasing the value of sales of own-brand food products that promote a sustainable lifestyle. In addition, under the Framework Agreement with the EBRD, the company has committed to reducing its carbon footprint by at least 40 per cent by 2028.
The Bank’s subscription will be directed towards financing Żabka Group’s operating costs and capital expenditures in Poland and Romania.
Żabka Group is the leading modern convenience retailer in Poland, with more than 11,000 stores operated under a franchise model, and recently expanded into Romania with the launch of its Froo brand in 2024.
The company has continuously been at the forefront of embracing sustainability and innovation best practice, adopting in 2021 a comprehensive environmental, social and governance (ESG) strategy which includes science-based GHG emission reduction targets as part of various efforts to minimise its environmental impact across the value chain.
The EBRD has supported Żabka Group as both a shareholder and provider of debt financing since 2017.
The EBRD is a leading institutional investor in Poland, having invested almost €16 billion in the country to date across 560 projects, including a record €1.43 billion in 2024.