The EBRD invested EUR 65 million (13% of the issuance amount) in a Green Covered Bond (""GCB" or the Bond") issuance of PKO BH, as part of an international issuance of EUR 500 million, that will be listed on the Luxembourg and Warsaw Stock Exchanges. This was the first international GCB issuance by a Polish bank and the first such out of the EBRD's EU countries of operation. The bond issuance is in line with the International Capital Market Association's ("ICMA") Green Bond Principles ("GBP") and Climate Bonds Standard, as verified by a second party opinion ("SPO") before subscription. The Bond has a maturity of 3 years.
The Project promotes green financial intermediation through supporting green covered bond issuances of the largest mortgage bank in Poland. It also contributes to the capital market development in Poland and the resilience of the important financial institution in the country.
ETI score: 60
The expected transition impact stems from its contribution to the Green and Resilient qualities:
Green through promoting green financial intermediation: the Project will support the green agenda of PKO BH and further promote green CB issuances, which so far still remain limited in the EBRD region including in Poland.
Resilient through contributing to (i) capital market development by supporting market expansion through covered bonds, including through green bonds, and the build-up of critical mass of the outstanding Polish covered bonds needed to create pricing benchmarks, build a yield curve, develop market liquidity, and crowd in a diverse base of international and local institutional investors; (ii) optimization of the bank's funding structure and diversification of the liability sources
PKO BANK HIPOTECZNY SA
PKO BH is the largest mortgage bank operating in Poland with EUR 5.6 billion in total assets as of December 2021. The mortgage bank is fully-owned by PKO BP ("the Parent"), the largest commercial bank in Poland with total assets of EUR 84.5 billion as of December 2021.
The Project's additionality stems from supporting PKO BH to successfully issue GCB/CBs during a time of market volatility and significant uncertainty in capital markets, supporting investor diversification and expansion of market for green bonds.
Environmental and Social Summary
Categorised FI (2019 ESP). The Environmental and Social (E&S) Due Diligence was done in-house and included a review of the 2021 AESR associated to previous transactions as well as review of the draft Green Covered Bond Framework. PKO BH, subsidiary of PKO BP, specialises in residential mortgage loans for individual clients, which is considered as low E&S risk. An ESG Manager and a set of publicly disclosed E&S Policies (including a Code of Ethics and an Employment Regulation) are in place at PKO BP level. PKO Bank Polski has adopted a set of ESG metrics which are integrated as part of the non-financial objectives of the Group. PKO BP is responsible for E&S disclosure for Group Annual Report (including PKO BH activities). The project is consistent with GET and the GET share is 70%.
The Client will be required to continue to comply with the EBRD's Performance Requirements 2, 4 and 9, implement the EBRD's E&S Risk Management Procedure for Mortgage lending, and continue to submit annual environmental and social reports to EBRD.
Technical Cooperation and Grant Financing
Company Contact Information
0048 22 521 5755
PKO Bank Hipoteczny S.A. Ul. Puławska 15 02-515 Warszawa Poland
PSD last updated
11 Jul 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Independent Project Accountability Mechanism (IPAM)
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