EBRD supports MREL-eligible bond issuance in Serbia

• EBRD invests RSD 1.2 billion in landmark bond issuance by UniCredit Bank Serbia
• Project sets new standard for raising of MREL-eligible funding in Serbia and wider Western Balkans
• Investment contributes to Serbia’s capital market development and dinarisation

The European Bank for Reconstruction and Development (EBRD) is investing RSD 1.2 billion (€10.2 million) in unsecured MREL-eligible bonds issued by UniCredit Bank Serbia (UCB) as one of the anchor investors, with UCB’s total issuance amounting to RSD 6.0 billion (€51.1 million). The bonds will be listed on the Belgrade Stock Exchange and will count towards UCB’s minimum requirement for own funds and eligible liabilities (MREL).

This financing will support lending to micro, small and medium-sized enterprises (MSMEs) in Serbia. In accordance with the Financial Intermediaries Framework, UCB has committed to increasing its SME portfolio by a multiple of the EBRD’s funding, prioritising new clients and those in economically underdeveloped regions.

At least 30 per cent of the proceeds from the EBRD’s subscription will be allocated to eligible green projects under the EBRD’s Green Economy Transition (GET) approach, supporting Serbia’s green transition.

This transaction will strengthen UCB’s compliance with regulatory requirements, diversify its bail-in-able funding base and contribute to the development of Serbia’s local capital market. This is one of the first MREL-eligible bond issuances in the country and the wider Western Balkans, so it will also have a demonstration effect on other local banks.

This investment in local currency is in line with the National Bank of Serbia’s dinarisation strategy, helping UCB to increase the Serbian dinar’s share of total funding and supporting the broader resilience of the financial sector.

The EBRD is a leading institutional investor in Serbia, having invested more than €10 billion through almost 400 projects, most of which have supported the private sector. In Serbia, the Bank’s priorities include enhancing private-sector competitiveness, productivity and access to finance.