Project description
and objectives:
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Proposed project with Euromarket Banka based in Podgorica, Montenegro, involving two transactions:
- €3 million revolving credit line for on-lending to local small and medium-sized companies (SMEs) in Montenegro.
- Equity investment up to €1.5 million, which would provide the EBRD with a shareholding in the region of 20 per cent.
Project objectives:
Debt: To extend EB's lending operations and to provide medium-term funding to Montenegrin companies.
Equity: The equity investment would support the realisation of the medium-term business plan which foresees investments into its branch network and IT. Through the shareholding in EB, the EBRD aims to contribute to the bank's institutional development.
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Transition impact:
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The EBRD credit line would stimulate growth within the private SME sector. As there is a massive lack of medium-term financing available in the market, this facility will help to fill this gap. The equity investment would strengthen EB's market position, which will have a significant demonstration effect for other banks in the market.
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The client:
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Euromarket Banka (EB) is a 100 per cent foreign capital-owned bank established in Podgorica, Montenegro in November 2000 It has good quality assets and profitability.
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EBRD finance:
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- €3 million five-year revolving credit line.
- Equity investment up to €1.5 million for the purchase of newly issued shares.
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Total project cost:
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Up to €4.5 million.
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Environmental impact:
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EB will be required to adopt and implement the EBRD’s Environmental Procedures for Local Banks, comply with the Bank’s Financial Intermediary environmental exclusion list and report annually to the EBRD on the environmental aspects of its activities. Sub-loans will be required to comply with national health, safety and environmental requirements.
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Technical
cooperation:
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Technical cooperation will be required for institutional building purposes aimed at enhancing credit analysis skills, strengthening liquidity and risk management abilities.
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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Karl von Klitzing, Operation Leader: klitzink@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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