EBRD invests EUR 25 mln in Pepco’s debut sustainable bond issue

The bonds, initially aimed at a limited pool of professional investors, will be placed on the Warsaw Stock Exchange and the International Stock Exchange as part of a targeted programme of up to PLN 2 billion (EUR 468.9 mln).

As stated, Pepco will use the proceeds to advance its goals of reducing scope 1 and 2 emissions by 50 percent by 2030 and scope 3 emissions by 25 percent by 2035, while supporting its ambition to achieve net-zero emissions by 2050.

"Key initiatives that will enable the group to reach these targets include investing in certified sustainable textiles, purchasing renewable energy, and acquiring or leasing certified green buildings," the EBRD wrote in the press release.

The bonds were issued under the group’s Sustainable Financing Framework, which was developed for the purpose of the issuance.

"Pepco is a strong player on Poland’s apparel market, and we are proud to support it as an anchor investor in this transaction. We hope this issuance will accelerate the growth of local currency green bonds, helping to deepen Poland’s capital markets and raising market standards for sustainability and governance," Frederic Lucenet, EBRD Head of Manufacturing and Services, said.

"The completion of this sustainable bond issuance is an excellent result for the Group. This success of this financing marks a key step in Pepco Group’s green transition, enabling us to accelerate progress towards our net-zero ambitions. The EBRD was a key anchor in achieving this milestone, with its strong participation and 17.5 percent subscription to the issuance. Attracting an international financial institution to our pool of financing partners underscores the credibility of our sustainability strategy and strengthens our commitment to the relevant environmental, social and governance standards," Pepco CFO, Willem Eelman, said.

Pepco Group is a leading pan-European discount variety retailer, operating under the Pepco and Dealz brands.

han/ pel/