Tatra Bank green bonds

Location:

Slovak Republic

Project number:

52449

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

16 Dec 2020

Status:

Signed

PSD disclosed:

21 Apr 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The EBRD invested EUR 30 million (10% participation) in a EUR 300 million senior preferred bond issued by Tatra banka, a.s.  ("Tatra") and listed on the Bratislava Stock Exchange. The project represents the first Green Bond issuance in the Slovak Republic and the largest MREL-eligible instrument issued on the local market since the introduction of the EU Bank Recovery and Resolution Directive and the MREL guidelines in the country.

Project Objectives

The project aims to support very strong Green-impact targets as the first Green Bond in the Slovak Republic issued in accordance with the International Capital Market Association Green Bond Principles with its proceeds to be allocated to the financing of green projects in accordance with Tatra's Green Bond Framework.

Transition Impact

ETI score: 63

The expected transition impact stems from contributions to the Resilient and Green qualities:

  • Resilient: The bonds will contribute to (i) capital market development (ii) regulatory compliance of Tatra, (iii) diversification of the funding base and the funding providers, and (iv) increase of Tatra's loss-absorption capacity and resilience to market or regulatory shocks;
  • Green: The project aims to promote further the green market practices in the Slovak Republic and fully complies with the Bank's GET approach.

Client Information

TATRA BANKA AS

Tatra banka is the third largest bank in the Slovak Republic by total assets with 17% market share as of June 2020. Tatra is a part of Raiffeisen Bank International group and the parent company holds almost 80% of its subscribed share capital.

EBRD Finance Summary

EUR 30,000,000.00

Total Project Cost

EUR 300,000,000.00

Additionality

The project contributes to capital market development in the Slovak Republic. The EBRD's additionality was evident in the support provided for the first Green Bond issue in the Slovak Republic. Also, the project is consistent with the EBRD's commitment to promote the green market practices in the Slovak Republic and its efforts to support the development of local financing markets for green instruments.

Environmental and Social Summary

Categorised FI (2019 ESP). Tatra banka is an existing client of the Bank and has an understanding and experience of the Bank's requirements of PRs 2, 4 and 9, will continue to comply with these PRs and report to the Bank on EHSS issues and process of undertaking due diligence on projects with high E&S risks.

Technical Cooperation and Grant Financing

Not applicable

Company Contact Information

Tatra banka, a.s.
tatrabanka@tatrabanka.sk
+421 2/5919 1000
www.tatrabanka.sk/en
Hodzovo namestie 3, 811 06 Bratislava 1

PSD last updated

21 Apr 2021

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.

 

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