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 investment aims to strengthen mBank's resilience and regulatory compliance while advancing Poland's green economy initiatives.
The bonds, listed on the Luxembourg Stock Exchange, have a four-year maturity with a call option after three years. They are designed to enhance mBank's loss absorption capacity through eligible bail-in-able instruments, improving its ability to withstand market and regulatory pressures.
The EBRD's involvement highlights its commitment to resilience and green transition. By participating in this Green Bond issuance, the EBRD supports mBank in meeting regulatory requirements and contributes to sustainable economic growth in Poland. The bonds align with the International Capital Market Association's Green Bond Principles, reinforcing mBank's dedication to environmental sustainability.
mBank, Poland's fifth-largest universal bank, has been listed on the Warsaw Stock Exchange since 1992 and is predominantly owned by Commerzbank, which holds nearly 70% of its shares. The EBRD's investment is part of its broader strategy to address funding gaps during periods of market volatility and geopolitical risk.
The proceeds from the bonds will be utilized under mBank's Green Bond Framework, which adheres to ICMA's Green Bond Principles and has been validated by a second-party opinion. This framework ensures that funds will support environmentally sustainable projects, contributing to Poland's green economy goals.
mBank will adhere to the EBRD's Performance Requirements and implement relevant risk management procedures. The bank will also provide annual environmental and social reports to the EBRD to maintain transparency and accountability regarding the use of bond proceeds.
This investment by the EBRD marks a significant effort to bolster financial resilience and promote green financing in Poland, reinforcing the country's commitment to a sustainable future.
