Erste&Steiermarkische bank d.d. Bond

Location:

Croatia

Project number:

52736

Business sector:

Financial institutions

Notice type:

Private

Approval date:

02 Dec 2020

Status:

Signed

PSD disclosed:

01 Jul 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 80 million (20% of the issuance amount) in a senior preferred bond issued by Erste&Steiermarkische bank d.d. ("ESB"), a part of an issuance of EUR 400 million listed on the Vienna Stock Exchange. This is the first bond issued by ESB on the international market.

Project Objectives

The project supports the resilience and regulatory compliance of the third largest bank in Croatia and contributes to the development of the local capital market. The project also supports the Green Economy Transition-approach with at least 80% allocation of EBRD investment in GET-eligible sub-projects.

Transition Impact

ETI score: null

The expected transition impact stems from the contribution to the Resilient and Well-Governed qualities:

  • Resilient: The bonds will contribute to (i) local capital market development (ii) regulatory compliance of ESB, (iii) diversification of the funding base and the funding providers and (iv) increase of ESB's loss-absorption capacity and resilience to market or regulatory shocks.
  • Well-Governed: The bonds will be listed on the Vienna Stock Exchange and ESB will be obliged to comply with its disclosure and corporate governance requirements.

Client Information

ERSTE & STEIERMARKISCHE BANK DD

ESB is the third largest bank in Croatia by total assets, with c. 15.8% market share as of end-2020. It is classified as Other Systemically Important Institution and is rated BBB+/stable by Fitch. ESB is owned by Erste Group Bank AG which holds 59.02% share and Steiermarkische Bank und Sparkassen AG which holds 40.98% share.

EBRD Finance Summary

EUR 80,000,000.00

Total Project Cost

EUR 400,000,000.00

Additionality

The project contributes to capital market development in Croatia. The project is also consistent with the EBRD's commitment to promote the green agenda in Croatia.

Environmental and Social Summary

Categorised FI (ESP 2019). ESB is an existing client and is in compliance with PRs 2, 4 and 9. ESB will be required to continue to comply with the EBRD's Environmental requirements and submit annual environmental and social reports to the Bank. Renewable energy projects financed with EBRD's use of proceeds will need to follow the E&S Eligibility Criteria for such projects.

Company Contact Information

Ms Mirjana Haluga
mhaluga@erstebank.com
www.erstebank.hr
Erste&Steiermärkische Bank d.d. Jadranski trg 3A 51000 Rijeka Republic of Croatia www.erstebank.hr

PSD last updated

01 Jul 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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