EUR 25.6 million credit protection guarantee to Raiffeisenbank Austria d.d. ("RBA"), a commercial bank incorporated in Croatia, by participating in a synthetic balance sheet securitisation of c. EUR 367 million performing SME and corporate loans' portfolio, originated by RBA. The structure uses a bilateral unfunded financial guarantee, passing on to EBRD the credit risk of the mezzanine tranche of the securitised portfolio.
The project boosts the resilience of a systemic bank in Croatia, by allowing RBA to achieve a risk-weighted assets' ("RWA") relief and optimise its regulatory capital requirements, while the RWA relief achieved will be redeployed to new on-lending to the real economy. As such, RBA will fully utilise this capacity to finance new eligible SME and corporate loans, out of which RBA will allocate funds in the amount of 120% of the Bank's guarantee for financing new GET eligibility projects.
ETI score: 66
The project delivers transition impact through the Resilient quality, as it contributes to the optimisation of the bank's capital structure by achieving weighted assets' relief and freeing up lending capacity, and support the establishment of an innovative instrument in the Croatian market. The project also supports the Green transition quality and the EBRD's GET approach in Croatia through RBA allocating a multiple of the EBRD investment towards projects, which meet strict GET-eligibility criteria.
RAIFFEISENBANK AUSTRIA DD ZAGREB
RBA is the fifth largest systemically important bank in Croatia with a market share of c. 8.3% by total assets as of year-end 2021, and is a long-standing existing client of EBRD. The bank is fully owned by Raiffeisen Bank International AG ("RBI"), which is listed on the Vienna Stock Exchange.
EBRD Finance Summary
Unfunded guarantee of EUR 25,595,814 under a synthetic securitisation
Total Project Cost
Unfunded guarantee of EUR 25,595,814 under a synthetic securitisation
The project facilitates the establishment of a novel instrument in the Croatian financial market, where investor appetite remains untested. The success of RBA's first synthetic securitisation issuance is expected to have a strong demonstration effect and be replicated by other banks in the market. EBRD's participation sets and promotes higher transaction standards and aims to support the mobilisation of institutional investors in future issuances. Furthermore, the project depicts strong non-financial additionality by committing RBA to allocate funds in the amount equivalent to 120% of EBRD's guarantee for financing GET eligibility projects. This helps RBA to promote green projects and enhance awareness and deployment of funds in this area and sets a market example for sustainable finance.
Environmental and Social Summary
Categorised FI (2019 ESP). RBA is an existing client and well known to the EBRD through previous exposures. Under the existing exposures, RBA is in compliance with the EBRD's Performance Requirements 2, 4 and 9. RBA will continue to comply with these PRs, implement EBRD's relevant Environmental and Social Risk Management Procedures, including the specific eligibility criteria for wind, solar, hydro, wind, solar, bioenergy and geothermal projects, as applicable; and continue to submit annual environmental and social reports to the EBRD.
Technical Cooperation and Grant Financing
Company Contact Information
Magazinska cesta 69 10 000 Zagreb, Croatia
PSD last updated
01 Feb 2023
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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Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.