VUB Covered Bonds

Location:

Slovak Republic

Project number:

48859

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

14 Dec 2016

Status:

Signed

PSD disclosed:

13 Feb 2017

Translated version of this PSD: Slovak

Project Description

An additional investment of up to EUR 25 million for a series of mortgage covered bonds to be issued by Všeobecna uverova banka ("VUB" of the "Issuer") in Slovakia over a period of 2 years, increasing the total EBRD investment in the Project to up to EUR 105 million. The Project falls under the EBRD's Covered Bond Framework for Slovakia. The original EBRD investment of EUR 80 million was signed in January 2017 and has been fully invested in covered bonds issued by VUB.

Project Objectives

The transaction will support the Issuer to access medium- to long-term funding by using a covered bond instrument collateralised by a pool of residential mortgage loans.

Transition Impact

The transition impact derives from:

Market expansion: the Project will contribute to building up a critical mass of outstanding covered bonds in Slovakia by supporting the largest covered bond issuance in the country, and potentially attracting a wider investor base.

Demonstration of successful restructuring: the Project will help VUB to set the basis for the repetitive issuances of larger size covered bonds in the future, support further increase in diversification of the funding sources via stable financing instruments and address asset-liability maturity mismatches.

Client Information

VSEOBECNA UVEROVA BANKA (VUB) AS

VUB is the second largest universal bank in Slovakia with 18% market share by total assets and the second largest player in the mortgage loans market, with 20% market share.

EBRD Finance Summary

EUR 80,000,000.00

Up to EUR 80 million.

Total Project Cost

EUR 750,000,000.00

Up to EUR 750 million.

Environmental and Social Summary

Categorised FI: Due diligence carried out included a review of performance to date under previous and existing projects with VUB. This assessment showed that Environmental and Social (E&S) management has been satisfactory and that VUB has demonstrated an on-going compliance with the EBRD's Environment, Health and Safety (EHSS) requirements. VUB has developed the capability and capacity to manage projects in line with the EBRD's requirements. VUB will be required to continue to comply with the EBRD's Performance Requirements, and continue to submit Annual Environmental and Social Reports to the EBRD.

Technical Cooperation

None.

Company Contact Information

Treasury and ALM department
bonds@vub.sk
www.vub.sk

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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