EBRD Invests €43M In Slovakia’s Largest Ever €750M Covered Bond By SLSP To Boost Green Projects And Social Housing

The European Bank for Reconstruction and Development (EBRD) is supporting the growth of Slovakia’s capital markets and the country’s transition to a greener, more inclusive economy through a €43 million investment in a €750 million covered bond issuance by Slovenská sporiteľňa bank (SLSP). This transaction represents the largest covered bond issuance ever in Slovakia.

For every euro invested by the EBRD in this issuance, SLSP will contribute an additional €0.50 from its own funds, resulting in a total deployment of €1.50. SLSP will allocate 120 per cent of the EBRD’s investment to green projects, including initiatives that reduce energy consumption and CO₂ emissions, as well as highly energy-efficient residential buildings. With the building sector accounting for 39 per cent of Slovakia’s total energy use, improvements in housing energy efficiency are critical to meeting the country’s climate targets and enhancing energy security.

In addition to supporting green projects, the transaction is designed to generate strong social impact through an innovative use of proceeds. SLSP will dedicate a further 30 per cent of the EBRD’s investment to affordable and social housing projects, including municipal and private rental housing, student accommodation, care homes, and accessible living upgrades. These measures aim to address financing gaps and expand housing access for underserved groups, including lower-income households, young people, the elderly, and people with disabilities, helping to improve housing affordability in Slovakia.

The country faces one of the most severe housing shortages in the European Union, particularly in cities such as Bratislava and Košice, where limited supply, high prices, and lengthy permitting processes have created an ongoing affordability crisis. SLSP is Slovakia’s largest bank, serving approximately 2.0 million clients and holding around 23 per cent market share in both loans and deposits. Since beginning operations in Slovakia, the EBRD has invested more than €3.1 billion across 174 projects, supporting the country’s economic development and sustainable growth.