International Finance Corporation (IFC) is considering investing up to the equivalent of €150 million in green bonds to be issued by IFC. Bank Zachodni WBK S.A.There is the potential to mobilize another $100 million or its euro equivalent from other investors.
According to the project documents he saw Crowdfund ContentProceeds from the facility will be devoted to climate-smart investments in Poland, including renewable energy, energy efficiency, water efficiency and green buildings.
The proposed project is intended to strengthen green lending in Poland and support BZ WBK’s expansion in a segment that IFC has identified as rapidly developing.
“With this facility, BZ WBK can become one of Poland’s leading banks in this rapidly developing segment due to its good financial position, IFC’s support for green strategy development, solid support for local companies and the global name and expertise of the Santander Group,” IFC said.
IFC said its investment will help significantly expand the bank’s green activities and position it as one of the leaders in Poland’s growing sustainable finance market.
The financing is also expected to spur broader growth in green loans in the country and support investments aimed at mitigating the impact of climate change.
The project will establish best practices in monitoring greenhouse gas savings. IFC plans to provide lenders with an IFC-developed greenhouse gas accounting tool for financial intermediaries.
The tool allows financial institutions to track their overall results while analyzing individual subprojects for strategic decision-making.
Bank Zachodni WBK, also known as BZ WBK, is the third largest bank in Poland in terms of assets and offers a wide range of banking services throughout the country.
The bank is headquartered in Wroclaw and operates a network of approximately 830 branches throughout Poland.
It was formed in 2001 by the merger of shares of Bank Zachodni SA and Wielkopolski Bank Kredytowy SA into the combined bank, which was listed on the Warsaw Stock Exchange in the same year.
The lender is currently 70% owned by Spain’s Banco Santander, while the remaining 30% is publicly held.
Banco Santander was founded in 1857 and is the largest bank in Spain. According to the project description, it is the 18th largest bank in the world in terms of assets.
The proposed transaction reflects IFC’s broader effort to work with financial institutions to expand access to finance for renewable energy, efficient buildings, water conservation and other climate-related projects.
By providing long-term financing and helping the bank develop its green strategy, IFC expects the investment to increase the availability of financing for local companies undertaking eligible environmental projects.
The facility will also help BZ WBK identify, assess and report the climate impact of its loan portfolio, including greenhouse gas savings generated by projects financed through bonds.
The proposed investment is subject to IFC’s internal review and approval process.
