Privredna Banka Zagreb - capital increase

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 37051

Status Complete

Location

Croatia

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 37051

Status Complete

Location

Croatia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

25 Jul 2006

Disclosure date

27 Jul 2006

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 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.

Transition Impact

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.

The Client

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.

EBRD Finance

Subscription of newly issued shares of PBZ, as part of a capital increase to take place in August 2006.

Project Cost

Total capital increase will be EUR 250 million.

Environmental Impact

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.

Technical Cooperation

None.

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.

Our story

How we invest in changing lives

What we offer for businesses

Search