Erste & Steiermärkische Bank d.d Bond

Location:

Croatia

Project number:

49732

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

31 Jan 2018

Status:

Signed

PSD disclosed:

04 Dec 2018

Translated version of this PSD: Croatian

Project Description 

The EBRD participated in HRK 300 million, 5-year, local bond issue of Erste & Steiermarkische Bank d.d. ("ESB" or “the Issuer”) with the total amount of HRK 45 million invested. The proceeds of the senior bond issuance will enable ESB to diversify its funding base and at the same time support the development of Capital Market in Croatia. The funds will be used for ESB’s regular course of operations.

Project Objectives

The Project will contribute to the development of the local capital market and will improve the access of the long term LCY funding.

Transition Impact

The Project will contribute to the resilience of the financial sector in Croatia by (i) developing the Croatian corporate bond market and (ii) responding to an increased demand for HRK-denominated funding. The bonds will be listed on Zagreb Stock Exchange, adding a well-governed feature of the investment as the Issuer will be obliged to comply with the corporate governance and disclosure requirements of ZSE.

Client information

ERSTE & STEIERMARKISCHE BANK DD

ESB is the third largest bank in Croatia with a market share of 14.7% at the end of H1 2018 and an existing client of EBRD. Erste Group Bank AG ("Parent") owns 59.02% of ESB's share capital and Steiermarkische Bank und Sparkassen AG i 40.98%. ESB reported total assets of EUR 9.1 billion at the end of H1 2018 (YE2017: EUR 8.9 billion), net profit of EUR 77 million (2017: EUR 61 million) and total equity of EUR 1.1 billion (same as at YE2017).

EBRD Finance Summary

EBRD participated in the bond issue with an amount of HRK 45.0 million

Total Project Cost

HRK 300,000,000.00

Environmental and Social Summary

Categorised FI: (ESP 2014). ESB is an existing client and is in compliance with EBRD's Performance Requirement (PRs) 2, 4 and 9.

A recent EBRD E&S monitoring visit to ESB confirmed that the bank's Environment and Social Management System (ESMS) has been formalised as required by Erste Group's Policy. An Environmental and Social Management Plan (ESMP) addressing improvements in regards to ESMS has been agreed with ESB. ESB will be required to continue to comply with the EBRD's Environmental and Social Risk Management Procedures for Corporate Loans, SME and Micro Loans and submit annual environmental and social reports on its compliance with the ESMP and the PRs.

Technical Cooperation

Not applicable.

Company Contact Information

Mirjana Haluga
mhaluga@erstebank.com
Ivana Lucica 2, 10000 Zagreb, Croatia
 

Business opportunities

For business opportunities or procurement, contact the client company.

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