The European Bank for Reconstruction and Development (EBRD) has invested 35 million euros in a green bond issued by Erste&Steiermärkische Bank (ESB), the Croatian subsidiary of the Austrian Erste Group, according to a statement.
Erste Bank reported last month that it successfully completed the issuance of its inaugural so-called green “preferred senior” bond on the international capital market, totaling 400 million euros, with a maturity of five years and a call option after four years.
The bond is listed on the Official Market of the Vienna Stock Exchange, and Erste Bank stated at that time that the funds raised would be used to promote green and sustainable investments and projects. The issuance was aimed at institutional investors in both international and domestic markets, and Erste highlighted that interest at one point exceeded three billion euros.
EBRD emphasized that this investment aligns with its three strategic goals in Croatia – strengthening the local capital market, supporting the resilience of the banking sector, and developing a green economy.
– The issuance will support ESB’s regulatory compliance, contribute to the diversification of its funding base, and increase its loss absorption capacity and resilience. The issuance will also promote the green agenda in Croatia – wrote EBRD.
As noted, the bond issuance contributes to ESB’s fulfillment of the so-called MREL requirements (Minimum Requirement for Own Funds and Eligible Liabilities), while also enabling EBRD to directly facilitate the growth of one of Croatia’s largest banks.
– Additionally, this investment represents the sixth EBRD bond purchase that meets MREL requirements issued by a Croatian bank, with three of them being ESB’s – reported EBRD, reminding that they have invested over 4.7 billion euros in Croatia through 248 projects to date.
