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Coop Pank AS raises capital from the European Energy Efficiency Fund

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Coop Pank AS and European Energy Efficiency Fund S.A. SICAV-SIF (hereafter eeef)
signed an agreement on 19.12.2023, on the basis of which the Coop Pank takes
unsecured subordinated loan from eeef in the amount of 15 million euros, with an
interest rate of 6 months euribor + 3.25% per annum. In the form of a
subordinated loan agreement, it is a capital instrument included in the bank's
Tier 2 own funds.

The subordinated loan is repayable in one installment and the term of the
agreement is 10 years. The bank has the right to repay the subordinated loan
early with the permission of the Financial Supervision Authority after 5 years
have passed since it was issued.

According to Paavo Truu, CFO of Coop Pank, he is first happy that in the current
interest rate environment, we managed to raise capital for the bank's growth on
such favourable terms. "Furthermore, cooperation with eeef is an important step
in the decarbonization of the bank's loan portfolio. For two years, we have been
thoroughly measuring the CO2 footprint of both direct and indirect activities of
Coop Pank and we know very precisely the CO2 impact from across our different
activity fields. It is clear that the largest environmental impact for banks
comes from their lending activities, and therefore we consider it very important
to reduce the CO2 footprint of our loan portfolio, thereby contributing to
Estonia's energy independence and green goals," said Truu.

The proceeds from the loan agreement will be used for continued implementation
of the bank's growth strategy by channelling the funds primarily into projects
that promote energy efficiency or renewable energy production, such as:

  * microgeneration of electricity, heat and cooling based on renewable and/or
    local energy sources including relevant networks and energy storage
    solutions;
  * public transport based on electricity including the infrastructure needed to
    maintain these;
  * investments to improve the energy efficiency of the regional infrastructure,
    public and private buildings, including energy storage and smart metering
    solutions.

In 2022 we also became a member of the United Nations Environment Programme
Finance Initiative (UNEP FI) and approved the Responsible Banking Principles,
bringing the bank's business strategy in line with the UN Sustainable
Development Goals and the objectives of the Paris Climate Agreement so as to
increase our positive impact on society.

Coop Pank, based on Estonian capital, is one of the five universal banks
operating in Estonia. The number of clients using Coop Pank for their daily
banking reached 180,300. Coop Pank aims to put the synergy generated by the
interaction of retail business and banking to good use and to bring everyday
banking services closer to people's homes. The strategic shareholder of the bank
is the domestic retail chain Coop Eesti, comprising of 320 stores.

Additional information:
Paavo Truu
CFO
Phone: +372 5160 231
E-mail: [email protected] (mailto:[email protected])