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EBRD supports launch of PLN denominated senior non-preferred bond issuances in Poland

By Nigina Mirbabaeva

  • EBRD is supporting two Polish banks in raising regulatory-compliant financing in Polish zloty
  • These will be the first senior non-preferred bonds issued by banks on the local capital market
  • Investments will help to facilitate further local capital markets development and support green investments in the country

The EBRD is supporting capital market development and the green economy in Poland, by participating in the issuance of the first PLN denominated senior non-preferred bonds issued by Santander Bank Polska S.A. (“SBP”) and Bank Polska Kasa Opieki S.A. (“Pekao”). The EBRD invested PLN 300 million (€64 million equivalent) in 2NC1 senior non-preferred bonds issued by SBP as part of its PLN 1.9 billion (€406 million equivalent) issuance, and (ii) PLN 100 million (€21 million equivalent) in senior non-preferred bonds issued by Pekao, as part of its PLN 750 million (€160 million equivalent) issuance. The bonds will be listed on the Warsaw Stock Exchange.

The two issuances were implemented as part of compliance with regulatory minimum requirements for own funds and eligible liabilities (MREL).  

With these transactions, EBRD is supporting the resilience of two systemic banks in Poland, while at the same time facilitating the development of the local capital markets. Furthermore, the investments contribute to the development of green financing in the country, a key strategic priority for the EBRD. Pekao committed to allocate the equivalent of 200 per cent of the proceeds from EBRD investments in its bonds to Green Economy Transition (“GET”) eligible projects. Meanwhile, Santander Bank Polska is the first bank in Poland to issue sustainability bonds, where the funds raised from the issue will be used to finance Eligible Green Assets and/ or Eligible Social Assets. 

Melis Ekmen Tabojer, Director for EU Banks and Structured Finance in the EBRD’s Financial Institutions Group, said:  “We welcome the successful placements of the SBP and Pekao bonds during such turbulent times on the European financial market and we are pleased that we had a role in this. It helps deepen and widen the capital market in Poland, an aspect that we see as a crucial element of our work in the country.”

Elisabetta Falcetti, EBRD Regional Director for Poland and the Baltic States, said: “We are particularly pleased that the proceeds of these successful issuances will go into financing green projects. The Green Economy Transition approach is a key policy of the EBRD and crucial for the sustainable development of the countries where we invest. We are thus proud that 80 per cent of our record EUR 990 million investment in Poland last year was in green financing.”

Pekao, a long-standing partner of the EBRD, is one of the largest financial institutions in the Central–Eastern Europe and 2nd largest bank in Poland with a leading retail and corporate franchise. Pekao is listed on the Warsaw Stock Exchange. Powszechny Zakład Ubezpieczeń S.A. (“PZU”) owns the largest minority stake of 20%, followed by the Polish Development Fund (“PFR”) with 12.8%, while ca. 50% of shares are freely traded. 

Santander Bank Polska S.A., the longest standing partner of the EBRD, the third largest bank in Poland, listed on the Warsaw Stock Exchange. It is rated BBB+ (negative)/ A2 (stable) by Fitch and Moody's respectively. Santander Group is the single largest shareholder with 67.41 per cent of total capital.

Promoting the low-carbon economy is a central focus of the EBRD’s work in Poland, where the EBRD has invested €12.4 billion in 493 projects to date.

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