Bank Millennium: investment in Bail-in-able Bond

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

In January 2019, EBRD invested PLN 166 million (EUR 38.7 million equivalent) in a subordinated bond issued by Bank Millennium S.A. as part of a total aggregate issuance of PLN 830 million (EUR 193.5 million equivalent). This is the second subordinated bond issued by Bank Millennium S.A. on the Polish market. The Tier 2 capital eligible bonds have a 10-year maturity, are callable after five years and will be listed on the Warsaw Stock Exchange.

In September 2023, EBRD invested EUR 33 million in senior non preferred bonds placed by Bank Millennium S.A. as part of a EUR 400 million Bond issuance, with the listing on the Luxemburg Stock Exchange. The total issuance size has been increased to EUR 500 million via additional (tap) placement. The bonds have a 4-year maturity with a call option in 3-years' time.

In September 2024, EBRD invested EUR 20 million in inaugural green senior non preferred bonds placed by Bank Millennium S.A. as part of a EUR 500 million Bond issuance listed on the Luxemburg Stock Exchange. The bonds have a 5-year maturity with a call option in 4-years' time.

Project ID 50412

Status Signed

Location

Poland

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

Rawa Pawel, Financial Institutions Department
pawel.rawa@bankmillennium.pl

Project ID 50412

Status Signed

Location

Poland

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

05 Sep 2018

Disclosure date

31 Jan 2019

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.

Bank Millennium: investment in Bail-in-able Bond (Polish) (PDF, 0.30MB)

Project description

Project objectives

The project supports the resilience and regulatory compliance of Bank Millennium, building resilience to market shocks by contributing to the gradual build-up of its loss absorption capacity in the form of eligible bail-in-able instruments. The project also supports capital market development and delivers on the Bank's green agenda and national green economy priorities for Poland.

Client information

Bank Millennium S.A. is the 7th largest commercial bank in Poland by total assets. It was established in 1989, it is majority owned by Banco Commercial Portugues SA and it is listed on the Warsaw Stock Exchange. It operates a traditional universal banking model and has a well-established (mostly retail focused) market franchise.

EBRD Finance Summary

ca. EUR 91.7 million

Total project cost

ca. EUR 1,182 million

Additionality

The project exhibits strong additionality by bridging the funding gap at a time of market volatility amplified by geopolitical risk. The presence of stable investor like EBRD remains important to ensure successful issuances of bail-in-able instruments coming from EBRD's EU region.

Environmental & Social Summary

Categorised FI (ESP 2019). Bank Millennium S.A. is an existing client of the Bank and is in compliance with the EBRD's Performance Requirements (PRs) 2, 4 & 9 under existing exposures. BM is satisfactorily managing E&S risks within the bank's existing portfolio by applying the EBRD's Environmental and Social Risk Management Procedures and has submitted Annual Environmental and Social Reports (AESRs) to the Bank.

Technical Cooperation and Grant Financing

None

Company Contact Information

Rawa Pawel, Financial Institutions Department
pawel.rawa@bankmillennium.pl

PSD last updated

25 Sep 2024

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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Bank Millennium: investment in Bail-in-able Bond

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

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)