Project description
and objectives:
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Participation in a capital increase in ProCredit Bank Serbia from currently
US$ 12 million (€ 10 million) to € 20 million necessitated by a combination of
fulfilling minimum capital requirements in the short-term (first tranche for €
6 million) and supporting the dynamic business development of ProCredit Bank
Serbia in the medium-term (second tranche for € 4 million).
Additionally, a loan of € 10 million is to be provided to ProCredit Bank
Serbia for on-lending to micro and small enterprises (MSEs).
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Transition impact:
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The project is expected to have a significant impact on the transition
process. ProCredit Bank Serbia will provide continuous support to micro and
small enterprises, including those in the agricultural sector which would
otherwise have little or no access to formal sector finance.
ProCredit Bank Serbia will also support the development of the financial
sector by operating as a best practice institution committed to the principles
of complete transparency and strong corporate governance. The capital increase
will also support the expansion of MSE lending activities to rural and remote
areas.
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The client:
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ProCredit Bank Serbia (Formerly Microfinance Bank of the Republic of
Yugoslavia - MFB) was established in April 2001 to provide financial services
to micro and small enterprises.
The founding shareholders are
-
EBRD (16.7%)
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Commerzbank AG (16.7%)
-
ProCredit Holding AG (formerly Internationale Micro Investitionen - IMI AG)
(53%)
ProCredit Bank Serbia has at present 35 branches and outlets in 21 cities.
Further branch expansion is expected in 2006.
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EBRD finance:
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Equity investment of € 1.6 million in two tranches (€ 1 million and € 0.6
million). Loan of € 10 million in two tranches.
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Total project cost:
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€ 50 million (€ 10 million equity, € 40 million debt)
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Environmental impact:
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ProCredit Bank Serbia will continue to carry out its operations in accordance
with the EBRD's Environmental Procedures for Small and Micro Loans. In
implementing these procedures, it will require its borrowers to comply, with
national health, safety, environmental, and public consultation requirements.
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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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ProCredit Bank Serbia - Head Office Belgrade
Bulevar despota Stefana
68c
Tel. +381 11 20 77 906
Fax +381 11 20 77 905
E-mail: info@procreditbank.co.yu
Website: www.procreditbank.co.yu
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EBRD contact:
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Guadalupe de la Mata, Operation Leader: matag@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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