Project Description
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.
Project Objectives
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.
Transition Impact
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.
Client Information
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
EUR 30,000,000.00
Unfunded guarantee of EUR 25,595,814 under a synthetic securitisation
Total Project Cost
EUR 30,000,000.00
Unfunded guarantee of EUR 25,595,814 under a synthetic securitisation
Additionality
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
None.
Company Contact Information
Jelena Gubo
debt.issuance@rba.hr
www.rba.hr
Magazinska cesta 69
10 000 Zagreb, Croatia
PSD last updated
01 Feb 2023
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 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 the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both 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. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
