Erste & Steiermärkische Bank d.d Bond

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 49732

Status Complete

Location

Croatia

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 49732

Status Complete

Location

Croatia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

31 Jan 2018

Disclosure date

04 Dec 2018

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Croatian

Project Description

The EBRD participated in HRK 300 million, 5-year, local bond issue of Erste & Steiermarkische Bank d.d. ("ESB" or “the Issuer”) with the total amount of HRK 45 million invested. The proceeds of the senior bond issuance will enable ESB to diversify its funding base and at the same time support the development of Capital Market in Croatia. The funds will be used for ESB’s regular course of operations.

Project Objectives

The Project will contribute to the development of the local capital market and will improve the access of the long term LCY funding.

Transition Impact

The Project will contribute to the resilience of the financial sector in Croatia by (i) developing the Croatian corporate bond market and (ii) responding to an increased demand for HRK-denominated funding. The bonds will be listed on Zagreb Stock Exchange, adding a well-governed feature of the investment as the Issuer will be obliged to comply with the corporate governance and disclosure requirements of ZSE.

Client information

ERSTE & STEIERMARKISCHE BANK DD

ESB is the third largest bank in Croatia with a market share of 14.7% at the end of H1 2018 and an existing client of EBRD. Erste Group Bank AG ("Parent") owns 59.02% of ESB's share capital and Steiermarkische Bank und Sparkassen AG i 40.98%. ESB reported total assets of EUR 9.1 billion at the end of H1 2018 (YE2017: EUR 8.9 billion), net profit of EUR 77 million (2017: EUR 61 million) and total equity of EUR 1.1 billion (same as at YE2017).

EBRD Finance Summary

EBRD participated in the bond issue with an amount of HRK 45.0 million

Total Project Cost

HRK 300,000,000.00

Environmental and Social Summary

Categorised FI: (ESP 2014). ESB is an existing client and is in compliance with EBRD's Performance Requirement (PRs) 2, 4 and 9.

A recent EBRD E&S monitoring visit to ESB confirmed that the bank's Environment and Social Management System (ESMS) has been formalised as required by Erste Group's Policy. An Environmental and Social Management Plan (ESMP) addressing improvements in regards to ESMS has been agreed with ESB. ESB will be required to continue to comply with the EBRD's Environmental and Social Risk Management Procedures for Corporate Loans, SME and Micro Loans and submit annual environmental and social reports on its compliance with the ESMP and the PRs.

Technical Cooperation

Not applicable.

Company Contact Information

Mirjana Haluga

mhaluga@erstebank.com

www.erstebank.hr

Ivana Lucica 2, 10000 Zagreb, Croatia

Transition impact

ETI Score:61

PSD last updated

20 May 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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