RBA d.d. (Croatia) Senior Preferred Bond

Location:

Croatia

Project number:

53251

Business sector:

Financial institutions

Notice type:

Private

Approval date:

12 Oct 2021

Status:

Approved

PSD disclosed:

10 Nov 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 39 million (30% of the issuance amount) in a senior preferred ("SP") bond issued by Raiffeisenbank Austria d.d. ("RBA"), part of a privately placed issuance of EUR 130 million. This is the first SP instrument issued by RBA since the introduction of the EU Bank Recovery and Resolution Directive that meets the regulatory minimum requirements for own funds and eligible liabilities (MREL).

Project Objectives

The project supports the resilience and regulatory compliance of the fifth largest bank in Croatia and contributes to the development of the local capital market. The project also supports the EBRD's Green Economy Transition ("GET") approach with 120% allocation of EBRD investment in GET-eligible sub-projects.

Transition Impact

ETI score: 65

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

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

Client Information

RAIFFEISENBANK AUSTRIA DD ZAGREB

RBA is the fifth largest bank in Croatia by total assets with c. 8% market share as of end-2020. RBA's is ultimately 100% owned by Raiffeisen Bank International AG ("RBI") via Raiffeisen SEE Region Holding GmbH, RBI's holding vehicle for its CEE subsidiaries.

EBRD Finance Summary

EUR 130,000,000.00

Total Project Cost

EUR 130,000,000.00

Additionality

The project demonstrates strong additionality by i) supporting capital market development in Croatia through the expansion of relatively new debt instruments, and ii) encouraging RBA's green agenda by promoting financing of green projects in line with EBRD's GET criteria.

Environmental and Social Summary

Categorised FI (ESP 2019). RBA is an existing client and will be required to continue to comply with EBRD's Performance Requirements 2, 4 and 9; and submit annual environmental and social reports to the Bank. The projects envisioned to be financed with the bond's use of proceeds can generally be categorized as low to medium risk and RBA has an Environmental and Social Management System in place appropriate to the type of sub-projects. Renewable energy projects financed with EBRD's use of proceeds will need to follow the E&S Eligibility Criteria for such projects. Cat. A sub-projects are excluded for all capital market transactions as per ESP 2019.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Mrs. Jelena Gubo
debt.issuance@rba.hr
www.rba.hr
Raiffeisenbank Austria d.d. Magazinska cesta 69 10 000 Zagreb, Croatia

PSD last updated

10 Nov 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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