Project description
and objectives:
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The proposed project will consist of the subscription of newly issued shares
of Privredna banka Zagreb (PBZ) as a part of the capital increase to take
place in August 2006.
The capital increase will strengthen PBZ’s capital base, allowing further
growth of the bank’s operations. EBRD’s participation in the capital increase
will support one of the largest and the most profitable commercial bank in
Croatia.
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Transition impact:
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EBRD’s original investment in PBZ was instrumental in supporting the full
privatisation of the bank and in strengthening its shareholding structure.
Such objectives were achieved and EBRD’s role in PBZ has been particularly
important in improving corporate governance standards.
The transaction is a follow up to the original equity investment and will
allow the EBRD to fully participate in the upside resulting from the
successful restructuring of PBZ after privatisation. EBRD’s role in PBZ will
continue as the bank is affirming its position in the Croatian market and
expanding regionally, thus in need of capital for additional growth.
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The client:
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PBZ is the second largest Croatian bank, with a 19.2% market share of total
banking assets as of end-December 2005.
As of the same date, its total assets amounted to EUR 6.4 billion, total
equity was EUR 601 million and net profit EUR 102 million. PBZ is majority
owned by Gruppo Banca Intesa (“Intesa”).
PBZ continues to register strong performances, in line with its peers in terms
of growth and outperforming the market in terms of profitability. Being the
second largest bank in Croatia by total assets, PBZ is the market leader in
credit card business and corporate finance. PBZ is also a market leader in the
foreign exchange and government paper market.
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EBRD finance:
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Subscription of newly issued shares of PBZ, as part of a capital increase to
take place in August 2006.
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Total project cost:
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Total capital increase will be EUR 250 million.
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Environmental impact:
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Screened FI.
Privredna Banka Zagreb (PBZ) is managing the reputational and, to a lesser
extent, the financial risks associated with its clients through the
implementation of the EBRD’s Environmental Procedures for Financial
Intermediaries, which PBZ adopted as a condition of the existing equity
investment and mortgage loan.
PBZ will be required to continue to implement the EBRD’s Environmental
Procedures for Local Banks for all its lending activities including the
compliance with EBRD’s Environmental Exclusion and Referral Lists; ensuring
the compliance of sub-borrowers with national standards of environment, health
and safety; the compliance with relevant national employment laws and
standards and Conventions of the International Labour Organisation (related to
the employment of children and young people, discrimination at work, and
forced labour); ensuring the compliance by sub-borrowers with relevant
requirements for public disclosure and consultation, when applicable. PBZ’s
has submitted a satisfactory annual environmental, health and safety report
for 2005 to the Bank and it will continue to submit annually environmental,
health and safety reports.
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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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Dinko Lucić, Chief Marketing Officer for the PBZ Group
Tel: (01) 6360 252
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EBRD contact:
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Tajana Mrkic, Operation Leader: mrkict@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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