Coop Pank Covered Bonds 2025

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

In March 2025, EBRD invested EUR 20.0 million in the inaugural 4-year covered bonds issued by COOP PANK AS ("Coop Pank"), as a part of EUR 250 million public issuance that was listed on the Irish Stock Exchange (Euronext Dublin).

Project ID 56122

Status Signed

Location

Estonia

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

Gunnar Mäemets, Head of Treasury
gunnar.maemets@cooppank.ee
+372 5088712
www.cooppank.ee

Project ID 56122

Status Signed

Location

Estonia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

12 Mar 2025

Disclosure date

26 Mar 2025

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.

PSD translation (Estonian) (PDF, 1.13MB)

Project Description

Project Objectives

The project supports the expansion of the nascent covered bond market in Estonia, and is fully consistent with the Bank's policy engagement on capital market development in the Baltics. The project also delivers on the Bank's green agenda and national green economy priorities for Estonia.

Transition Impact

ETI score: 61

The expected transition impact stems from the contribution to the Resilient and Green qualities.

The project will support the Resilient transition quality by expanding the emerging covered bond market in Estonia. The project complements the Bank's extensive policy engagement in the Baltics aiming at the development of the local capital markets.

The Green transition quality is underpinned by the green use of proceeds: the project will support the Bank's GET approach in Estonia through Coop Pank's allocating 100% of EBRD's investments to GET-eligible projects.

Client Information

COOP PANK AS

Coop Pank is the 5th largest financial services group in the Estonian banking sector and provides universal banking solutions to private and corporate clients in Estonia. Established in 1992 as AS Eesti Krediidipank, the bank was rebranded as Coop Pank in early 2017, following the acquisition of a majority shareholding by the Estonian retail chain Coop Eesti. Headquartered in Tallinn, Coop Pank is a systemic bank and holds a Baa2 credit rating from Moody's. Coop Pank has been listed on the Nasdaq Tallinn Stock Exchange since December 2019. As of 12 March 2025, its market capitalization was EUR 210m.

EBRD Finance Summary

EUR 20,000,000

Total Project Cost

EUR 250,000,000

Additionality

The project supports Coop Pank in their first covered bond issuance amidst a challenging geopolitical environment, shallow local capital market capacity, sizeable amount to be issued by the bank (largest issuance to date) and investors' preference for higher-yielding instruments, further limiting their interest in covered bonds. The project also benefits from non-financial additionality by supporting Coop Pank's green agenda through the promotion of green projects financing in line with EBRD's GET eligibility.

Environmental and Social Summary

Categorised FI (ESP 2024). As this is a capital markets transaction, due diligence relied on publicly available information, the completed environmental and social (E&S) due diligence questionnaire, and additional details provided by Coop Pank as a new client to the Bank. The use of proceeds aligned with the EBRD's GET eligibility criteria will be monitored annually through publicly available information. Coop Pank has a Credit Policy that integrates E&S considerations into its investments, a Green Office Policy addressing environmental sustainability and health and safety provisions, and Human Resources policies aligned with national legislation, including provisions on equal treatment and gender equality. The Client is a signatory of the UNEP FI Principles for Responsible Banking, conducts regular ESG-related employee training, and demonstrates growing awareness of its E&S risks. In 2024, Coop Pank conducted a CSRD double materiality assessment and is planning a more detailed climate risk analysis and evaluation of its operations. Further enhancement of internal E&S capacity and management will be necessary to align Coop Pank with the EBRD's E&S Policy requirements for partner financial institutions, particularly regarding the effective management of supply chain risks. The portfolio of potential green projects financed through the proceeds is unlikely to include any Category A projects. Coop Pank is required to comply with Environmental and Social Requirements (ESRs) 2, 4, and 9, as well as the E&S Exclusion List when allocating proceeds. Additionally, Coop Pank must apply relevant E&S Eligibility Criteria for green transactions in hydro, wind, solar, bioenergy, and geothermal projects, as applicable. The Client is encouraged to utilise the EBRD's Sustainable Finance Hub for supporting E&S resources and guidance.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Gunnar Mäemets, Head of Treasury
gunnar.maemets@cooppank.ee
+372 5088712
www.cooppank.ee

PSD Last Updated

26 Mar 2025

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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Coop Pank Covered Bonds 2025

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

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)