Project description
and objectives:
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EBRD’s pre-privatisation equity investment in Komercijalna Banka (KB) will be
the first step for full privatisation through an IPO in 3 to 5 years. EBRD’s
presence will be particularly important as it will actively participate in the
preparation for the IPO through the design and implementation of a
comprehensive institution building plan, with particular emphasis in such key
areas as improved corporate governance, strengthened credit and risk
management procedures, internal re-organisation and upgraded customer services.
EBRD’s investment will fund necessary investments particularly in IT, branch
network upgrading and staff training. The main objective will be the
development of KB into a modern, efficient bank in an increasingly competitive
financial sector, taking full advantage of its branch network, the largest in
Serbia.
Further, EBRD’s long-term debt finance will help KB to expand its operations
and introduce new products, particularly to finance residential mortgages 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 economy of the country. The
transition impact potential of the project is built around the following
elements:
1. Preparation of KB for full privatisation by upgrading its key business and
control functions and strengthening corporate governance. The project, through
an institution building plan, will re-shape the bank’s business and operations
in preparation for full privatisation.
2. Facilitation of the transfer of ownership to the private sector through
EBRD involvement and conditionality.
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The client:
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KB is currently Serbia’s third largest bank by assets with a market share of
9.8%. KB is also Serbia’s largest financial institution still majority owned
by the State, which directly and indirectly holds 70.0% of the bank’s capital.
KB recorded total assets of EUR 874.0 million and equity of EUR 104.5 million
as at December 2005.
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EBRD finance:
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Acquisition of up to 25% of KB’s capital by subscribing to newly issued shares.
In addition, EBRD will also extend to KB a facility for mortgage finance.
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Total project cost:
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tbc
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Environmental impact:
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KB will carry out its operations in accordance with EBRD's Environmental
Procedures for Local Banks. In implementing these procedures, KB will require
its borrowers to comply, at a minimum, with national /local health, safety,
environmental and public consultation requirements.
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Technical
cooperation:
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EBRD’s equity investment is complemented by an institution building plan. The
Canadian government has granted EUR 1.5 million in technical assistance for
consultancy services for the implementation of the institution building plan.
The technical assistance programme started in September 2006 and will last for
two years.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Komercijalna Banka
Svetog Save 14, 11000 Beograd
e-mail: posta@kombank.com
Phone: (381) 11 30 80 100
Fax: (40)-264-407179
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EBRD contact:
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Mike Taylor, Operation Leader: taylorm@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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