Project description
and objectives:
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Equity investment of €12.6 million in new issue of shares.
The principal objectives of the project are:
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to contribute to the corporate governance of the group, helping PEKAO to
develop and implement its strategy and consolidation process; and
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to help PEKAO meet capital-adequacy requirements during its consolidation
process, enhancing operational flexibility.
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Transition impact:
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The project is expected to:
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increase the competitive standing of the group through on-going restructuring
with a resultant increase in competition in the financial sector;
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increase competition, which should also lead to further integration of the
financial sector into the national economy, thereby lowering the cost of
financial services across economic sectors; and
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serve as a demonstration effect of a market-led approach to consolidation and
in particular, efficiency improvements.
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The client:
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PEKAO is one of the largest banking groups in Poland. The group comprises the
parent bank, Bank Pekao S.A with headquarters in Warsaw, and three regional
banks: Bank BDK based in Lublin in south-east Poland, Bank PBG based in Lodz
in central Poland and Bank PBKS based in Szczecin in north-west Poland.
PEKAO’s primary business is the provision of commercial banking services,
including lending and deposit-taking, to large corporations and small and
medium-sized enterprises.
As at mid-year 2000, the bank has the second-largest branch network in the
country (with 712 outlets, second only to PKO BP, plus branches in New York
and Paris), ATM network and dominance in the plastic card business (with 35
per cent of those in issue). The bank employs 16 per cent of the total banking
sector staff.
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EBRD finance:
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Equity investment of €12.6 million in newly issued shares to maintain the
EBRD's 5.29 per cent stake of PEKAO’s enlarged capital. This increase follows
combined offering of newly issued PEKAO shares to domestic and international
investors. The EBRD's initial stake was acquired in September 1998, when the
Bank subscribed to 7,690,000 shares, providing a 5.29 per cent holding.
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Total project cost:
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€12.6 million. The proceeds will be used to support PEKAO’s ongoing strategy
of business expansion and operational enhancement.
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Environmental impact:
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PEKAO will carry out its operations in accordance with the EBRD's
Environmental Procedures for Local Banks. These provide for the integration of
environmental due diligence into PEKAO's credit appraisal processes and a
requirement that borrowers comply, at a minimum, with national and local
health, safety and environmental regulations and standards and public
consultation requirements. PEKAO will submit annual environmental reports to
the EBRD.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Rafael Szczepaniak, Operation Leader: szczepar@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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