DCM ESB MREL 2 (IFC-49235)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Croatia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
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
FI
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
Jan 19, 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
Erste & Steiermarkische Bank d.d.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 16.36 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 15
Converted using 2024-01-19 exchange rate.
Project Cost (USD)
$ 16.36 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 15
Converted using 2024-01-19 exchange rate.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 1, 2024

Disclosed by Bank Jan 25, 2024

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Can you contribute information about this project?
Contact the EWS Team

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.

As stated by the IFC, the project entails an IFC investment of €15.0 million in the first green senior preferred bond issued in the international market by Erste & Steiermarkische Bank d.d. in line with the principles of the Erste Group’s Sustainable Finance Framework. The bonds were offered to institutional investors on the Vienna Stock Exchange under the Bank’s Multi Issuer EMTN Programme, consisting of the Securities Note dated 4 December 2023 and Registration Document dated 4 December 2023.

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.

The IFC categorized the project E&S risk as FI-2.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
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 stated by the IFC, Erste & Steiermarkische Bank d.d. is a member of the Erste Group Bank and a systemic bank in Croatia. The Bank currently ranks as the third largest commercial bank in Croatia by total assets with a 16.8 percent market share and total assets of $12.4 billion as of June 30, 2023. The Bank has over 2,750 employees and over 1 million clients. The Bank’s long-term issuer default rating is A- (Stable outlook) by Fitch, one notch higher than the Croatian sovereign rating and the highest in Croatian banking system.

Erste is a banking group headquartered in Austria and a leading regional banking group that offers a broad range of services to retail, SME and corporate clients. The Erste Group serves 16.2 million customers through a region-wide network of about 2,000 branches. As of June 30, 2023, the Erste Group had more than 42,900 employees and total assets of €344 billion. Erste is rated A+ (stable outlook) by S&P, A1 (stable outlook) by Moody’s, and A (stable outlook) by Fitch, with shares listed and traded on the Vienna Stock Exchange, Prague Stock Exchange, and Bucharest Stock Exchange.


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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Financial Intermediary - Erste & Steiermärkische Bank d.d.:

Nikolina Mikulic - Head of Asset & Liability Management Division
Phone: +385 (51)365 591
Email: nmikulic@erstebank.hr
Address: Ivana Lucica 2, 10000, Zagreb, Croatia
Website: https://www.erstebank.hr/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works