LHV Bank Covered bonds 2024 (EBRD-55848)

Countries
  • Estonia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 9, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
AS LHV Pank
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 41.03 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 37.5
Converted using 2024-10-09 exchange rate.
Project Cost (USD)
$ 246.19 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 225
Converted using 2024-10-09 exchange rate.
Bank Documents
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 24, 2025

Disclosed by Bank Nov 7, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, in October 2024, EBRD invested EUR 37.5 million in 4-year covered bonds issued by AS LHV Pank ("LHV"), as a part of EUR 225 million public issuance that was listed on the Irish Stock Exchange (Euronext Dublin).

The project supports the expansion of the nascent covered bond market in Estonia and it is fully consistent with Bank's policy engagement on capital market development in the Baltics. The project also delivers on the Bank's green agenda and national green economy priorities for Estonia.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

AS LHV Group and its banking subsidiary AS LHV Pank are existing clients of the EBRD. LHV will be required to continue to comply with EBRD's Performance Requirements 2, 4 and 9, apply the E&S Exclusion List and Referral List to the allocation of EBRD proceeds in the bond and make sure that no high risk and no Category A projects are financed through this instrument. Furthermore, LHV will be required to continue to implement EBRD's applicable E&S Risk Management Procedures and continue to submit annual environmental and social reports to the EBRD. Any potential renewable energy projects financed through the various issuances will need to follow the E&S Eligibility Criteria for hydro, wind, solar, bioenergy and geothermal projects, as applicable. Any potential solar sub-projects would be managed in line with the EBRD's Management Approach for Solar Supply Chain Risk Management and any subsequent guidance developed under that approach. The partner bank will continue to report on E&S  performance of the operation and compliance with the ESP annually to the Bank.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The bank invested EUR 37.5 million in 4-year covered bonds issued by the client, as a part of EUR 225 million public issuance that was listed on the Irish Stock Exchange (Euronext Dublin).

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

AS LHV Pank is the 4th largest bank in Estonia and the banking arm of LHV Group, which own 100% of the bank. As of end-H1 2024, LHV accounted for 92.4% of the Group's assets of €6.8 billion. LHV Group has been listed on the Tallinn Stock Exchange since 2016 with the market capitalisation of €1.1 billion as of August 2024. LHV is rated A3 and LHV Group is rated Baa3 by Moody's.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - AS LHV Pank Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Ülar Kiisla
ylar.kiisla@lhv.ee
+372 5743 2271
https://www.lhv.ee/en
Tartu mnt 2, 10145, Tallinn

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works