Project description
and objectives:
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The proposed project will allow Trust Banka ("TB") to become one of the few fully foreign -owned commercial banks in the country. The project will consist of 100% acquisition of TB's shares, by and Osterreichische Volksbank AG ("VB"), and a capital increase by EBRD and VB.
The project has following objectives:
- to support the strategic investor VB in entering the Yugoslav banking markets
- to promote the development of a private financial institution in Serbia and Montenegro with the potential of becoming an important financial intermediary for the local economy
- to assist the bank in strengthening its capital base and support the bank's development and restructuring;
- to provide guidance and institutional building through EBRD'seat on the Supervisory Board; and
- to attract additional funding sources to promote the bank's lending activities.
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Transition impact:
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Transition impact in this project is twofold. Firstly, the Bank is promoting development in the Serbian banking sector as well as enhancing competition. Secondly, the project will set and demonstrate high corporate governance standards to Serbia & Montenegro's financial sector. By controlling the bank, the Sponsor will work with the EBRD support on establishing strong management structures, efficient lending procedures and prudent risk management. The Bank will be represented on the bank's Supervisory Board.
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The client:
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Trust Banka AD Beograd, a small private bank in Serbia, oriented to provide a broad range of banking services to SMEs. The bank employs 36 people and operates in Belgrade.
Oesterreichehische Volksbanken AG, as the Sponsor, an Austrian bank with assets of approximately €20 billion and capital base of €730 million, rated A 2 by Moodys.
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EBRD finance:
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Equity investment of €2.6 million to acquire 15% shareholding through subscription to new shares in a capital increase.
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Total project cost:
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Up to €17 million.
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Environmental impact:
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TB will be required to implement environmental procedures in accordance with EBRD's "Environmental Procedures for Intermediated Lending through Local Banks". TB will also be required to adhere to the Bank's Environmental Exclusion List. Clients of TB should comply with national requirements for environmental, health and safety.
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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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Gordana Majstorovic
Head of International Dept.
Trust Banka
Bulevar Umetnosti 16a
1170Belgrade
Serbia and Montenegro
Tel: + 381 11 146 487
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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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