EBRD invests €30 million in the Slovak Republic’s inaugural green bond

By Axel  Reiserer

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  • EBRD invests €30 million in Tatra banka’s inaugural Slovak green bond
  • Total issuance volume of €300 million
  • Support for green financing market development in the Slovak Republic

The European Bank for Reconstruction and Development (EBRD) has supported the Slovak Republic’s first green bond issuance with a €30 million investment in the senior preferred paper. The total volume issued by Tatra banka, a leading local lender, was €300 million.

The EBRD’s investment shows its commitment to promoting green market practices in the Slovak Republic, one of Bank’s key goals. In particular, the transaction contributes to the country’s progress on its Integrated National Energy and Climate Plan 2021-30, mandated by the European Union (EU) for each of its member states, addressing all five dimensions of the EU’s energy union strategy: decarbonisation, energy efficiency, energy security, internal energy markets, and research, innovation and competitiveness.

The Bank’s investment in the green bond, which was issued in compliance with the Green Bond Principles of the International Capital Market Association and also meets the minimum requirement for own funds and eligible liabilities, contributes to green funding and helps develop the market for green instruments in the Slovak Republic, while supporting Tatra’s resilience, regulatory funding compliance and funding diversification. Tatra banka is a long-standing partner of the EBRD in supporting green market practices in the Slovak Republic, participating in sustainable energy and resources credit lines since 2007.

Melis Ekmen Tabojer, EBRD Director for EU Banks and Structured Finance in the Financial Institutions Group, said: “We are very proud to support the first green bond issued in the Slovak Republic. This transaction confirms the EBRD’s commitment to support the country’s green market practices and contributes to its ambitious green targets. With this investment, we will be able to make a contribution to green financing as well as to the development of the capital market in the Slovak Republic.”

The bond was priced on 16 April by Tatra banka, a subsidiary of Raiffeisen Bank International and the third-largest lender by assets in the Slovak Republic. It was subscribed by local and international investors with the help of joint lead managers BNP Paribas, Landesbank Baden-Württemberg and Raiffeisen Bank International. The bond will trade on the Bratislava Stock Exchange.

To date, the EBRD has invested more than €2.6 billion through 145 projects in the Slovak Republic. Capital-market development and the provision of green financing in line with the EBRD Green Economy Transition approach are the Bank’s key priorities in the country.

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