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.
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.
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.
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
Total Project Cost
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
Company Contact Information
Tatra banka, a.s.
+421 2/5919 1000
Hodzovo namestie 3, 811 06 Bratislava 1
PSD last updated
21 Apr 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.