International Finance Corporation and Bank Pekao Launch Partnership for Sustainable Growth

Strategic Insights -

The International Finance Corporation (IFC) and Bank Pekao S.A. have launched a long-term partnership to support Poland's energy transition and sustainable growth. Under the partnership, IFC is considering investing up to $250 million in a series of bonds issued by Bank Pekao, which will be used to finance green projects, including energy-efficient transport and buildings, sustainable water use, and wastewater management. The partnership aims to contribute to the resilience of Poland's banking sector, strengthen the bank's financing capacity, and support the country's ambitious targets to transform its energy mix.

Key Takeaways:

  • The IFC and Bank Pekao have launched a partnership to support Poland's energy transition and sustainable growth, with a potential investment of up to $250 million in a series of bonds.
  • The proceeds from the bond issuance will be fully earmarked for green projects, including energy-efficient transport and buildings, sustainable water use, and wastewater management.
  • The partnership aims to contribute to the resilience of Poland's banking sector, strengthen the bank's financing capacity, and support the country's ambitious targets to transform its energy mix.
  • Poland has set ambitious targets to transform its energy mix, with plans to significantly reduce its reliance on coal, currently the source of 60 percent of its electricity.
  • Achieving this transition is expected to require $449 billion in investment by 2050, more than half of the country's 2023 GDP, with a substantial share expected from the private sector.
  • At present, green finance accounts for around 8 percent of Bank Pekao's lending, pointing to significant opportunities for growth.
  • IFC has been supporting private sector development in Poland for over 30 years and invested and mobilized $1.8 billion in fiscal years 2024 and 2025.
  • The partnership will help mobilize the investment needed for Poland to realize its energy transition ambitions and support projects in clean energy and water efficiency.

Statistics:

  • Up to $250 million in potential investment by IFC in a series of bonds issued by Bank Pekao.
  • 8 percent of Bank Pekao's lending is currently in green finance.
  • $449 billion in investment required by Poland to transform its energy mix by 2050.
  • More than half of Poland's 2023 GDP is expected to be invested in the energy transition by 2050.
  • IFC has invested and mobilized $1.8 billion in Poland in fiscal years 2024 and 2025.

Sources:

  • International Finance Corporation press release.