EBRD invests €30 million in Slovak Republic's green bond

The European Bank for Reconstruction and Development (EBRD) has supported the Slovak Republic's first green bond issuance with a €30 million investment in the senior preferred paper.

The total volume issued by Tatra banka, a leading local lender, was €300 million. The EBRD's investment shows its commitment to promoting green market practices in the Slovak Republic, one of Bank's key goals.

In particular, the transaction contributes to the country's progress on its Integrated National Energy and Climate Plan 2021-30, mandated by the European Union (EU) for each of its member states, addressing all five dimensions of the EU's energy union strategy: decarbonisation, energy efficiency, energy security, internal energy markets, and research, innovation and competitiveness.

The Bank's investment in the green bond, which was issued in compliance with the Green Bond Principles of the International Capital Market Association and also meets the minimum requirement for own funds and eligible liabilities, contributes to green funding and helps develop the market for green instruments in the Slovak

Republic, while supporting Tatra's resilience, regulatory funding compliance and funding diversification. Tatra banka is a long-standing partner of the EBRD in supporting green market practices in the Slovak Republic, participating in sustainable energy and resources credit lines since 2007.

Melis Ekmen Tabojer, EBRD Director for EU Banks and Structured Finance in the Financial Institutions Group, said: "We are very proud to support the first green bond issued in the Slovak Republic. This transaction confirms the EBRD's commitment to support the country's green market practices and contributes to its ambitious green targets. With this investment, we will be able to make a contribution to green financing as well as to the development of the capital market in the Slovak Republic."

The bond was priced on 16 April by Tatra banka, a subsidiary of Raiffeisen Bank International and the thirdlargest lender by assets in the Slovak Republic. It was subscribed by local and international investors with the help of joint lead managers BNP Paribas, Landesbank BadenWürttemberg and Raiffeisen Bank International. The bond will trade on the Bratislava Stock Exchange. To date, the EBRD has invested more than €2.6 billion through 145 projects in the Slovak

Republic. Capital-market development and the provision of green financing in line with the EBRD Green Economy Transition approach are the Bank's key priorities in the country.

Meanwhile, The European Bank for Reconstruction and Development (EBRD) is providing a loan of €25 million to Crédit Agricole Bank Ukraine to increase the competitiveness of micro, small and medium-sized enterprises (MSMEs) in the country. The loan is backed by grant funding from the European Union (EU) under its EU4Business initiative

The new financing will enable the bank to expand its leasing solutions, in Ukrainian hryvnia, to MSMEs, so that these firms can invest in upgrades of machinery, equipment and technologies that comply with EU product quality, health and safety, and environmental protection standards. The lender aims to dedicate at least 70 per cent of the loan to financing green technologies, in line with the EBRD's Green Economy Transition (GET) approach.

In addition to long-term financing, lessees will receive grant support, funded by the EU, in the form of investment incentives on completion of their upgrade projects. The funding is available under the

EU4Business-EBRD Credit Line ? a joint initiative by the EBRD and EU to help companies bring their products and services in line with EU standards, foster workplace health and safety, and advance green practices.

The programme is also available in Georgia and Moldova, and recently extended to other Eastern Partnership countries to make economies greener, more competitive and more sustainable.

Alexander Pavlov, Deputy Director for Ukraine, Financial Institutions, said: "Access to finance and technology is crucial for sustainable growth of Ukrainian private sector and MSMEs in particular. Leasing is an important alternative way of financing SMEs and we are pleased to increase our support to development of leasing solutions through strong and reliable financial sector partners such as Crédit Agricole."

Crédit Agricole has been operating in Ukraine since 1993 and provides a full range of banking services there. In particular, it is a leader in car leasing and a strategic partner to agribusinesses.

Carlos de Cordoue, the CEO of Crédit Agricole, said: "Crédit Agricole is a reliable, long-term partner of the EBRD and I embrace this new stage of our cooperation.