BANK GOSPODARKI ZYWNOSCIOWEJ (BGZ) (PORTAGE & SUB DEBT)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 3525

Status Complete

Location

Poland

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 3525

Status Complete

Location

Poland

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

07 Sep 2004

Disclosure date

08 Sep 2004

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The proposed project is an equity investment in Bank Gospodarki Zywnosciowej (“BGZ”), the tenth largest Polish bank in terms of assets and the main provider of banking services to the Polish agribusiness sector and to rural areas.

The EBRD will participate in a capital increase which will result in a minority stake of 15% in partnership with Rabobank International, which will purchase shares from regional and cooperative banks wishing to exist. Additionally it is expected that EBRD and Rabobank will purchase subordinated convertible bonds that will qualify as Tier II capital for BGZ.

The investment by Rabobank and the EBRD will ensure the capital and strategic support necessary to transform BGZ into a modern and efficient universal bank focusing on rural finance. The investment also paves the way for an eventual IPO of BGZ to further strengthen private ownership of BGZ.

Transition Impact

The Project represents both a key milestone in the process of final transformation of the Polish banking sector and in the restructuring of BGZ.

The Project will ensure the transfer of ownership of BGZ to the private sector which in and of itself will represent a catalyst for change. BGZ will benefit from the support of the EBRD and Rabobank in the implementation of its Development Strategy. The recapitalisation of BGZ will have an important impact on the transition of the country’s large agricultural and rural communities given the BGZ’s strong role in this sector. It will also provide needed capital to the regional and cooperative banks as it will release them from the shareholdings in BGZ; the transformation of the co-operative sector has been hindered by the slow transformation process of BGZ

Second, the introduction of changes to the Statute of BGZ is a condition for the investment by Rabobank and the EBRD, which will promote appropriate corporate governance standards in this bank including fostering of transparency, accountability and responsibility amongst the shareholders, supervisory board members, managers and employees.

Third, the EBRD’s experience in many previous privatisation and pre-privatisation investments will ensure that BGZ will successfully complete its restructuring to improve profitability and expand its range of products and services as a universal commercial bank.

The Client

BGZ is the tenth largest Polish bank in terms of assets (PLN 16.6 billion as at end-2003, EUR 3.5 billion equivalent) and the main provider of banking services to the Polish agribusiness and agricultural sectors and rural areas.

EBRD Finance

The EBRD will purchase 15% of the share capital and voting rights of BGZ and purchase subordinated convertible bonds when issued for a total investment not to exceed PLN 357 million.

Project Cost

The EBRD and Rabobank together will purchase shares of BGZ and purchase the subordinated convertible bonds when issued for a total amount of circa PLN 1.2 billion.

Environmental Impact

BGZ will carry out its operations in accordance with EBRD's Environmental Procedures for Local Banks across the full range of its operations. In implementing these procedures, BGZ will require its borrowers to comply, at a minimum, with national health, safety and environmental requirements.

Technical Cooperation

None.

Company Contact

Press Officer
Bank Gospodarki Zywnosciowej
Head Office
Ulica Kasprzaka 10/16
01-211 Warsaw
Poland
Tel: +48 22 860
Fax: +48 22 860
Website: www.bgz.pl

Transition impact

ETI Score:100

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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