Euro Bank Bond Investment for EBRD in Poland

Issued by Euro Bank, the EBRD has announced their intentions to invest PLN 50 million into senior unsecured bonds (zloty-denominated). Under the bond program currently operated by Euro Bank, this is the third that has been PLN-denominated and the support from the EBRD will be important.

With these bonds, Euro Bank will continue to have access to medium-term funding thanks to the lending activities of the domestic debt capital market. With the proceeds, the liquidity profile will strengthen while they also plan to diversify the funding base for the future. With this, Euro Bank will become a more prominent presence on the Polish market which, in turn, leads to an overall boost to the Polish economy.

As a retail bank, Euro Bank originally focused their attention on cash loans but they now have a wide range of products for all clients. Owned by Societe Generale, a French Group, Euro Bank has a positive rating with Fitch at A- while also offering a stable outlook which is important for the future. With the investment from the EBRD, the main aim is to improve the local capital market and this has been a key aim for the Bank in Poland as they continue towards a strong and forward-facing economy.

Director for EU Banks in the Financial Institutions Group for the EBRD, Lucyna Stanczak-Wuczynska, has said “The EBRD is pleased with the successful bond issuance by Euro Bank and to play a role in this as an investor. The placement will provide Euro Bank with additional funds which will be dedicated to the funding needs of private individuals.”

Regional Director for Poland and the Baltics at the EBRD, Grzegorz Zielinski, said “This is an innovative step to strengthen the funding of Euro Bank and thus its further growth and expansion. This is the first four-year tenor of Euro Bank’s bonds, which illustrates the sound position the institution has already won and the recognition it enjoys in the market. With our participation in the issuance we aim to further support this development.”

Euro Bank CEO, Alexis Lacroix, also commented on the agreement by saying “We appreciate the active participation of the EBRD in our bonds issuances. The support from such a strong investor enables us not only to diversify our funding sources, but also helps to extend the maturity terms of issuances, which contributes to the development of the local capital market.”

After first working in Poland in 1991, the EBRD has been ever-present since. In over 380 projects, they’ve invested €8.5 billion and the fruits of their labour is now clear to see.