The International Finance Corporation (IFC) is considering an investment of up to $150 million equivalent in euros in a green bond to be issued by Bank Zachodni WBK S.A., with the potential to mobilize a further $100 million, or its euro equivalent, from other investors.
According to project documents seen by CrowdFund Insider, proceeds from the facility will be earmarked for 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 described as rapidly developing.
“With this facility, BZ WBK can become one of the leading banks in Poland in this rapidly developing segment due to its good financial position, IFC’s support in helping to develop green strategy, sound outreach to local companies, and global name and expertise of Santander Group,” IFC said.
IFC said its investment would help significantly expand the bank’s green business 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 lending in the country and support investments aimed at alleviating the impact of climate change.
The project will establish best practice in monitoring greenhouse gas savings. IFC plans to provide the lender with an IFC-developed greenhouse gas accounting tool for financial intermediaries.
The tool allows financial institutions to keep track of their aggregate results while undertaking analysis of individual sub-projects for strategic decision-making.
Bank Zachodni WBK, also known as BZ WBK, is the third-largest bank in Poland by assets and offers a full range of banking services across the country.
The bank is headquartered in Wroclaw and operates a network of about 830 branches throughout Poland.
It was established in 2001 through the merger of Bank Zachodni S.A. and Wielkopolski Bank Kredytowy S.A. Shares in the combined bank debuted on the Warsaw Stock Exchange during the same year.
The lender is currently 70% owned by Spain’s Banco Santander, while the remaining 30% is held as free float.
Banco Santander began operations in 1857 and is the largest bank in Spain. According to the project disclosure, it ranks as the world’s 18th-largest bank by assets.
The proposed transaction reflects IFC’s broader effort to work with financial institutions to expand access to financing for renewable energy, efficient buildings, water conservation and other climate-related projects.
By providing long-term funding 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 would also help BZ WBK identify, assess and report the climate impact of its lending portfolio, including the greenhouse gas savings generated by the projects financed through the bond.
The proposed investment is subject to IFC’s internal review and approval process.