Bank Millennium S.A. Senior Bonds

Location:

Poland

Project number:

46319

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

07 Mar 2014

Status:

Complete

PSD disclosed:

29 Jun 2015

Translated version of this PSD: Polish

Project Description

The EBRD is considering investments in a series of senior unsecured bonds to be issued by Bank Millennium S.A. (“Millennium”) on the Polish capital market in local currency. The Project comes under the Polish Financial Institutions Debt Capital Market Framework launched in December 2013 and extended further in December 2014.

Initial investment of the EBRD in Millennium’s senior unsecured bonds was approved and took place in March 2014. Potential subsequent investments were approved on 10 June 2015.

The bonds will support Millennium’s sustained access to medium-term funding via the domestic debt capital market and facilitate its loan portfolio growth. They will allow the bank to diversify its funding base and strengthen its liquidity profile. As a consequence Millennium will be able to expand its presence and activities on the domestic market which is expected to benefit real sector of the economy.

Transition Impact

The transition impact is derived from:

  1. Market expansion: the proposed bond issuance will contribute to further building the critical mass of outstanding quality non-sovereign capital market instruments needed to create pricing benchmarks, develop market liquidity and attract institutional investors in Poland.
     
  2. Demonstration of balance sheet restructuring towards longer term liabilities which will match long term assets.
     
  3. Maintaining high standards for transparency and reporting.

The Client

Bank Millennium S.A is Poland’s 7th biggest bank by assets as of YE 2014. It is a universal bank with the focus on retail banking and strengthening position in corporate sector, offering its services via 418 branches and electronic banking channels. The bank is listed on the Warsaw Stock Exchange and majority owned by Banco Comercial Portugues (50.1%), the second largest bank in Portugal.

EBRD Finance

Investment in the senior unsecured bonds of PLN 42 million in March 2014. Potential subsequent investments were approved on 10 June 2015, with PLN 60 million invested in June 2015.

Project Cost

Up to PLN 102 million.

Environmental and social categorisation, impact, and mitigation

Categorised FI. Millennium is required to comply with EBRD's Performance Requirements 2 and 9 and submit annual reports to the EBRD on environmental and social matters and on the implementation of the Performance Requirements.

For Category A projects, this section will need to be updated on an annual basis.

Technical Cooperation

None.

Company Contact

Pawel Rawa – Director of Financial Institutions Department

E-mail: pawel.rawa@bankmillennium.pl

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.