Project summary document

Project description
and objectives:

A programme for the provision of up to EUR 50 million of debt, equity and quasi-equity financing to selected banks that are private, or in the process of privatisation, in Slovenia.

The Framework’s objective is to promote the development of a market-oriented economy in Slovenia by supporting the growth, development, and strengthening of quality financial institutions. The main use of proceeds for the funding under the Framework will be: to provide additional capital, in Tier 1 and Tier 2 form, and to provide additional long-term funding to be on lent in an agreed manner.

Sub-projects:

• Slovenia FI FW - SKB Banka Housing Loan
• Slovenia FI FW - Ljubljanska Banka (sub loan)

Transition impact:

Strengthening the financial sector will ultimately be of benefit to the real economy and small and medium-sized enterprises, as it will result in both improved financial intermediation in the economy and improved financial services for individuals and enterprises. All projects will aim to assist local Slovenian banks in diversifying and strengthening their funding base, which will in turn allow the local banks to expand their operations. It is also expected that the projects will contribute to the consolidation of the financial sector in the country.

The client:

Various Slovenian banks.

EBRD finance:

The first project will be a EUR15 million subordinated loan to Nova Ljubljanska Banka. The subordinated loan will be part of the EUR 25 million subordinated debt issue of Nova Ljubljanska Banka arranged by ABN AMRO.

Total project cost:

EUR 50 million framework for financial sector activities in Slovenia.

Environmental impact:

Participating banks will be required to implement environmental procedures, based on the EBRD’s Environmental Procedures for Intermediated Lending through Local Banks, to their lending and investment activities. Environmental due diligence training will be offered to participating banks, including the development of tailored environmental procedures manuals, which will form the basis of environmental due diligence efforts. Participating banks will ensure that borrowers are not engaged in activities listed on the Bank’s Environmental Exclusion List, and require that borrowers are in compliance, at a minimum, with Slovenian health, safety and environmental requirements. In its "Environmental Performance Review of Slovenia" dated May 1997, the Economic Commission for Europe concluded that despite differences in legislative structure, the Slovene approach to environmental protection is compatible with that of the EU and that the final results are very similar. Slovenia has been working to harmonise its approach further, and is tightening legislation in key areas, such as water quality, waste management and nature protection.

By including environmental considerations in their lending and investment criteria and ongoing monitoring, the banks will be raising awareness of environmental issues within client companies and supporting the enforcement activities of the environmental authorities in Slovenia. The overall environmental impact of the operation will therefore be positive.

Technical
cooperation:

None

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

EBRD contact:

Nadja Cvek, Operation Leader: cvekn@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com