Project description
and objectives:
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The proposed project is an equity investment in Cacanska Banka (CB) as the
first step towards full privatisation through sale to a strategic investor in
3 to 4 years. EBRD’s investment will help CB to grow into a strong and larger
regional bank through expansion of the branch network and introduction of new
products, with a clear focus on SME financing. In addition, EBRD’s presence
will be particularly important for the institutional strengthening of CB in
preparation for full privatisation through the design and implementation of a
comprehensive institution building plan, focusing on key areas as corporate
governance, credit and risk management procedures, internal re-organisation
and upgraded customer services.
The main objective of the EBRD investment is the development of CB into a
modern and efficient institution, capitalising on its regional focus and
leading position in SME financing in one of the most active SME regions in
Serbia.
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Transition impact:
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The proposed project is expected to contribute to the transition process of
the Serbian banking sector and the overall development of the targeted region.
The transition impact potential of the project is built around the following
elements:
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Strengthening of the bank in preparation for full privatisation by upgrading
its key business and control functions and enhancing corporate governance
through an institution building plan.
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Facilitation of the transfer of ownership to the private sector through EBRD
involvement and conditionality
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Contribution to the enhancement of financial intermediation through
improvement of access to finance for SMEs outside the capital Belgrade.
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The client:
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CB is a regional bank based in Čačak, central Serbia, with primary focus on
SME financing. CB is majority owned by the State, which directly and
indirectly holds 60.3% of the bank’s capital.
CB recorded total assets of EUR 41.7 million and equity of EUR 18.3 million as
at end December 2005.
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EBRD finance:
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Acquisition of up to 25% of CB’s capital by subscribing to newly issued shares.
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Total project cost:
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tbc
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Environmental impact:
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Screened FI.
CB is required to implement EBRD’s Environmental Procedures for EBRD
Intermediated Financing through Local Banks across all its operations, which
include: (i) adherence to EBRD’s Environmental Exclusion & Referral Lists;
(ii) compliance by sub-borrowers with the national environmental, health and
safety legislation; (iii) reporting on any material damages and/or accidents
associated with operation; and (iv) submission of Annual Environmental Reports
to EBRD.
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Technical
cooperation:
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As mentioned above, EBRD’s equity investment will be complemented by an
institution building plan. EBRD is procuring donor funds for this programme.
CB is currently benefiting from a technical assistance programme of EUR 640
thousand, funded by the European Agency for Reconstruction (EAR), for the
implementation of an SME credit line under EBRD’s Western Balkans SME Finance
Facility.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Čacanska Banka a.d.
32000 Čačak - Pivarska 1
Tel: (+381) 32 302 203
Fax: (+381) 32 225 048 or 32 348 898
E-mail: office@cacanskabanka.co.yu
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EBRD contact:
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Ines Hobdari, Operation Leader: hobdarii@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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