PEKAO S.A. (EQUITY)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 5212

Status Complete

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

Project ID 5212

Status Complete

Location

Poland

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

16 Jun 1998

Disclosure date

09 Jul 1998

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."

Project Description

Equity investment of US$ 100 million in new issue of shares.

The principal objectives of the project are:

to assist PEKAO in achieving its objective of promoting majority private ownership
to help PEKAO to meet capital-adequacy requirements during its privatisation and consolidation process, enhancing operational flexibility
to contribute to the corporate governance of the group, helping PEKAO to develop and implement its strategy and consolidation process.

Transition Impact

The project is expected to: (i) increase the competitive standing of the group through its privatisation and ongoing restructuring with a resultant increase in competition in the financial sector; (ii) increase competition, which should also lead to further integration of the financial sector into the national economy, thereby lowering the cost of financial services across economic sectors; and (iii) serve as a demonstration effect of a market-led approach to consolidation and in particular, efficiency improvements.

The Client

PEKAO is the largest banking group in Poland. The group comprises the parent bank, Bank Pekao S.A with headquarters in Warsaw, and three regional banks: Bank BDK based in Lublin in south-east Poland, Bank PBG based in Lodz in central Poland and Bank PBKS based in Szczecin in north-west Poland. PEKAO's primary business is the provision of commercial banking services, including lending and deposit-taking, to large corporations and small and medium-sized enterprises. PEKAO's management has decided to merge fully the three regional banks which were absorbed into PEKAO by a government decision in 1996.

As at 31 December 1997, PEKAO had 24,920 employees based in 564 branches in Poland and ten in cities worldwide, including Berlin, New York, Paris and Tel Aviv. At 1997 year-end PEKAO had total assets of US$ 13.5 billion, representing some 20 per cent of all assets in the Polish banking system.

EBRD Finance

Equity investment of US$ 100 million in new issue of shares. The subscription to newly issued ordinary shares represents 5.3 per cent of PEKAO's enlarged capital. This increase follows the combined offering of 15 per cent of PEKAO's shares to domestic and international investors.

Project Cost

US$ 100 million. The proceeds of the capital increase will be used to finance expected growth in the bank's interest-earning assets and investments in technology as well as modernisation of PEKAO's organisation.

Environmental Impact

PEKAO will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. These provide for the integration of environmental due diligence into PEKAO's credit appraisal processes and a requirement that borrowers comply, at a minimum, with national and local health, safety and environmental regulations and standards and public consultation requirements. PEKAO will submit annual environmental reports to the EBRD.

Technical Cooperation

None

Company Contact

PSD last updated

01 Feb 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

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Tel: +44 20 7338 7168
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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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