Bank Millennium S.A.

Location:

Poland

Project number:

47287

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

11 Feb 2015

Status:

Complete

PSD disclosed:

25 Mar 2015

Translated version of this PSD: Polish

Project Description

The EBRD is considering an investment up to PLN 270 million (EUR 63 million equivalent) for the purchase of shares of Bank Millennium S.A., representing up to 3% of the bank’s capital and voting rights, subject to acceptable terms and conditions, including pricing.
 
EBRD shall acquire its stake through an Accelerated Book Building (“ABB”) process in which Banco Comercial Portugues aims to reduce its stake in Bank Millennium S.A. from 65.51 % to 50.1%.
 
Framework agreement between Banco Comercial Portugues, Bank Millennium S.A., and EBRD is expected to be signed as part of the transaction to address EBRD policy requirements (Environmental and Social Performance Requirements and Fraud and Corruption) and nomination of an independent  Supervisory Board nominee.
 
 

Transition Impact

 
The operation will contribute to a transition of the Bank Millennium S.A. ownership into a broader base of institutional investors through an Accelerated Book Building process while endorsing the bank’s future prospects under its growth strategy.
 
In a challenging geopolitical environment, the EBRD’s participation has the potential to stabilise the bank’s shareholder base, support capital market development through the ABB process and improve the bank’s corporate governance structure.

 

The Client

Bank Millennium S.A. is the sixth-largest commercial bank in Poland by total assets with a 5.2% market share. It is listed on the Warsaw Stock Exchange and majority owned by Banco Comercial Portugues (65.51%), the second largest bank in Portugal. Bank Millennium mainly focuses on small corporate clients and mass market and affluent retail customers.
 

EBRD Finance

Up to PLN 270 million (EUR 63 million equivalent) for the purchase of shares in Millennium Bank S.A.
 

Project Cost

Up to PLN 1,356 million (EUR 317 million equivalent) .
 

Environmental and social categorisation, impact, and mitigation

 
Categorised FI. Bank Millennium is in compliance with PRs 2, 4 & 9 under the existing transactions with the EBRD. Bank Millennium will be required to implement EBRD's E&S Procedures for Corporate Loans across its entire portfolio and to submit annual environmental and social reports to the EBRD.
 

Technical Cooperation

None.
 

Company Contact

Karina Saroukhanian, Senior Banker, Financial Institutions Group, EBRD – saroukhk@ebrd.com
 

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

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