The European Bank for Reconstruction and Development (EBRD) has invested EUR 30 million in senior non-preferred bonds issued by mBank S.A., as part of a EUR 750 million Green Bond issuance. This significant investment aims to bolster the resilience and regulatory compliance of mBank, one of Poland’s largest commercial banks, while also advancing the country’s green economy initiatives.
The bonds, which will be listed on the Luxembourg Stock Exchange, have a 4-year maturity with a call option after three years. This investment supports mBank in building its loss absorption capacity through eligible bail-in-able instruments, enhancing its ability to withstand market and regulatory shocks.
The EBRD’s involvement in this project underscores its commitment to promoting resilience and green transition qualities. By participating in this Green Bond issuance, the EBRD helps ensure that mBank meets its regulatory requirements and supports the broader objective of sustainable economic growth in Poland. The project aligns with the International Capital Market Association’s Green Bond Principles, further solidifying mBank’s commitment to environmental sustainability.
mBank, rated BBB by S&P and BBB- by Fitch, is Poland’s fifth-largest universal bank and has been listed on the Warsaw Stock Exchange since 1992. Commerzbank has been a major shareholder since 1994, holding just under 70% of mBank’s shares, with the remainder in free float.
The EBRD’s investment is part of a broader strategy to bridge funding gaps during periods of market volatility, particularly in the face of geopolitical risks. The EBRD’s support is crucial in ensuring the successful issuance of bail-in-able instruments within the EU region, highlighting the bank’s role as a stable investor in challenging times.
This project also emphasizes the importance of green financing. The proceeds from the bonds will be utilized under mBank’s Green Bond Framework, which is aligned with the ICMA’s Green Bond Principles and has been verified by a second-party opinion. This ensures that the funds will support environmentally sustainable projects, contributing to Poland’s national green economy priorities.
As part of the project’s environmental and social commitments, mBank will comply with the EBRD’s Performance Requirements and implement relevant risk management procedures. The bank will also submit annual environmental and social reports to the EBRD, ensuring transparency and accountability in the use of the bond proceeds.
The EBRD’s investment in mBank’s Green Bond issuance represents a significant step towards enhancing financial resilience and promoting sustainable energy projects in Poland, reinforcing the country’s commitment to a greener future.
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