By Axel Reiserer
The European Bank for Reconstruction and Development (EBRD) has invested €20 million(US$24.27million) in the first senior-preferred green bond issued by Slovenská sporiteľňa.
The bond was priced on June 9 and subscribed by local and international investors. The bond will be traded on the Bratislava Stock Exchange.
The EBRD’s investment supports green market practices in the Slovak Republic ‒ one of Bank’s key goals in the country. The issuance contributes to the country’s progress on its Integrated National Energy and Climate Plan 2021-2030, in line with European Union (EU) requirements, and addresses the five dimensions of the EU’s Energy Union: decarbonisation, energy efficiency, energy security, internal energy markets and research, innovation and competitiveness.
As the biggest systemic financial institution in the Slovak Republic, Slovenská sporiteľňa is a long-standing partner for the EBRD in supporting green market practices in the country. The EBRD’s investment also strengthens Slovenská sporiteľňa’s resilience, regulatory funding compliance and funding diversification. The green bond was issued in compliance with the Green Bond Principles of the International Capital Market Association and is an eligible liability against Slovenská sporiteľňa’s Minimum Requirement for Own Funds and Eligible Liabilities.
EBRD Director for EU Banks & Structured Finance in the Financial Institutions Group, Melis Ekmen Tabojer said: “We are very pleased to be part of this inaugural green bond issuance by Slovenská sporiteľňa. The EBRD’s participation demonstrates our continued support for the development of green market practices in the Slovak Republic”.
The EBRD has been supporting the capital market development in the Slovak Republic not only as an investor but also with policy engagements, for instance in the preparation of a covered bonds law. To date, the EBRD has invested €2.7 billion through almost 150 projects in the country.