Bank Millennium S.A. Poland subordinated bonds

Location:

Poland

Project number:

50412

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

05 Sep 2018

Status:

Signed

PSD disclosed:

31 Jan 2019

Translated version of this PSD: Polish

Project Description

The EBRD invested PLN 166 million (EUR 38.7 million equivalent) in a subordinated bond issued by Bank Millennium S.A. as part of a total aggregate issuance of PLN 830 million (EUR 193.5 million equivalent). This is the second subordinated bond issued by Bank Millennium S.A. on the Polish market. The Tier 2 capital eligible bonds have a 10-year maturity, are callable after five years and will be listed on the Warsaw Stock Exchange.

Project Objectives

With this investment, EBRD is seeking to support the optimisation of Bank Millennium S.A. capital structure by increasing the weight of Tier 2 instruments and MREL-eligible funding base, in line with the regulatory requirements to be defined at European and local level.

EBRD provided support to Bank Millennium S.A. bond issuance, mobilising the institutional investor base and contributing to the development of the Polish capital market.

Transition Impact

The project supports the Bank's Green Economy Transition ("GET") approach in Poland via Bank Millennium allocating 150% of the EBRD funds towards funding certified commercial and residential projects which meet the GET eligibility criteria.

The project also strengthens the capital adequacy of one of the biggest banks in Poland.

Client Information

BANK MILLENNIUM SA

Bank Millennium S.A. is the 6th largest commercial bank in Poland by total assets. It was established in 1989, it is majority owned by Banco Commercial Portugues SA and it is listed on the Warsaw Stock Exchange. Bank Millennium S.A. is rated BBB-/Baa2 (Fitch/Moody's). It operates a traditional universal banking model and has a well-established (mostly retail focused) market franchise.

EBRD Finance Summary

PLN 166,000,000

Total Project Cost

PLN 830,000,000

Environmental and Social Summary

Categorised FI (ESP 2014). Bank Millennium S.A. is an existing client of the Bank and is in compliance with the EBRD's Performance Requirements (PRs) 2, 4 & 9 under existing exposures.

BM is satisfactorily managing E&S risks within the bank's existing portfolio by applying the EBRD's Environmental and Social Risk Management Procedures and has submitted Annual Environmental and Social Reports (AESRs) to the Bank.

Technical Cooperation

None.

Company Contact Information

Rawa Pawel, Financial Institutions Department
pawel.rawa@bankmillennium.pl

Business opportunities

For business opportunities or procurement, contact the client company.

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