UniCredit Mortgage Bank: covered bonds investment

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

In September 2023, the EBRD invested in two covered bond issuances of UniCredit Mortgage Bank ("UCBM"): HUF 5 billion (€12.9 million) in a green covered bond, as part of HUF 20 billion green covered bond issuance, and HUF 6 billion (€15.5 million) in a regular covered bond, as part of HUF 23.2 billion regular covered bond issuance. The bonds are rated A1 by Moody's and listed on the Budapest Stock Exchange. These investments have been preceded by three investments made throughout 2020, in particular: (i) HUF 4.5 million (€11.6 million) investment in March 2020, (ii) HUF 1.5 billion (€3.9 million) in June 2020 and (iii) HUF 2.9 billion (€7.4 million) in November 2020 for an aggregate investment of HUF 8.9 billion (€22.8 million) in regular covered bonds that were listed on the Budapest Stock Exchange.

Project ID 49974

Status Signed

Location

Hungary

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

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

Company Contact Information

Petra Reök
petra.reok@unicreditgroup.hu
+36-20-9859166
https://www.unicreditbank.hu/en/individual.html#home

Project ID 49974

Status Signed

Location

Hungary

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

20 Sep 2023

Disclosure date

01 Apr 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

UniCredit Mortgage Bank: covered bonds investment (Hungarian) (PDF, 0.09MB)

Project description

Project objectives

With this transaction the EBRD aims to support covered bond issuances of UCMB to facilitate its mortgage lending activities and optimise the funding structure through long-term funding instruments. Furthermore, EBRD promotes resource efficiency in the country by requiring Unicredit Hungary (the parent company of UCMB) to invest an amount corresponding to at least 100 per cent of the EBRD's investment in non-green/regular covered bonds to finance green investments in renewable energy projects and/or residential building sectors.

Transition impact

ETI Score:65

project contributes to the resilience of the financial sector by (i) supporting the Hungarian covered bond market; (ii) strengthening the balance sheet structure of UniCredit Group in Hungary through the reduction of the asset-liability maturity mismatch. The transaction supports the EBRD's Green Economy Transition approach in Hungary with UCH undertaking to invest an amount corresponding to at least 100 per cent of the EBRD investment in covered bonds in GET-eligible projects.

Client information

UNICREDIT MORTGAGE BANK ZRT (JELZALOGBANK)

UniCredit Mortgage Bank is the third largest mortgage bank in Hungary. It was established in June 1998 and is 100 per cent owned by UniCredit Bank Hungary Zrt.

EBRD Finance Summary

EBRD Finance Summary: HUF 19,861,100

Total project cost

Total Project Cost: HUF 114,063,800

Additionality

The additionality of the project comes from (i) providing medium- to long-term funding to UCH via covered bonds in an environment of a still developing local capital market for such instruments; (ii) introduction of green financing structure; and (iii) conditionalities, whereby UCBM will be required to follow environmental and social standards for PFIs, anti-corruption and sound AML policies.

Environmental & Social Summary

Category FI (2014 ESP). The client will apply PR2 and PR4 to internal operations, and PR9 and the appropriate EHS Risk Management Procedures to lending activities.

Technical Cooperation and Grant Financing

not applicable

Company Contact Information

Petra Reök
petra.reok@unicreditgroup.hu
+36-20-9859166
https://www.unicreditbank.hu/en/individual.html#home

Implementation summary

not applicable

PSD last updated

27 Sep 2023

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

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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UniCredit Mortgage Bank: covered bonds investment

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)