Pekao S.A. Derivative (equity II)



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

03 Oct 2000



PSD disclosed:

19 Oct 2000

Project Description

Equity investment of €12.6 million in new issue of shares.

The principal objectives of the project are:

  • to contribute to the corporate governance of the group, helping PEKAO to develop and implement its strategy and consolidation process; and
  • to help PEKAO meet capital-adequacy requirements during its consolidation process, enhancing operational flexibility.

Transition Impact

The project is expected to:

  • increase the competitive standing of the group through on-going restructuring with a resultant increase in competition in the financial sector;
  • 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
  • serve as a demonstration effect of a market-led approach to consolidation and in particular, efficiency improvements.

The Client

PEKAO is one of the largest banking groups 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.

As at mid-year 2000, the bank has the second-largest branch network in the country (with 712 outlets, second only to PKO BP, plus branches in New York and Paris), ATM network and dominance in the plastic card business (with 35 per cent of those in issue). The bank employs 16 per cent of the total banking sector staff.

EBRD Finance

Equity investment of €12.6 million in newly issued shares to maintain the EBRD's 5.29 per cent stake of PEKAO’s enlarged capital. This increase follows combined offering of newly issued PEKAO shares to domestic and international investors. The EBRD's initial stake was acquired in September 1998, when the Bank subscribed to 7,690,000 shares, providing a 5.29 per cent holding.

Project Cost

€12.6 million. The proceeds will be used to support PEKAO’s ongoing strategy of business expansion and operational enhancement.

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



Business opportunities

For business opportunities or procurement, contact the client company.

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