RAIFFEISEN BANK BOSNIA (F. MARKET) (PORTAGE EQUITY)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 4261

Status Complete

Location

Bosnia and Herzegovina

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 4261

Status Complete

Location

Bosnia and Herzegovina

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

15 Jul 1997

Disclosure date

17 Jun 1997

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

DM 2 million (ECU 1 million) equity investment in Market Banka's share capital, which shall represent approximately 35 per cent of the bank's DM 5.8 million paid-in equity and 20 per cent of the voting rights.

Project objectives: To assist Market Banka in strengthening its capital base; to provide guidance and institution building through the EBRD's seat on the management board and a comprehensive technical assistance package; and to assist Market Banka to attract other shareholders and additional funding sources.

Transition Impact

The institutional strengthening and guidance for a young but well-managed bank will support the emergence of a private sector in Bosnia and Herzegovina, contribute to the lengthening of maturities in credit markets, offer a natural contact for potential foreign banking partners and, above all, set and demonstrate high standards for Bosnia's financial sector. These potential impacts are increased to the extent that trade between the different ethnic areas is gradually reintegrated.

The Client

Market Banka d.d., Sarajevo was established in 1992 by local companies operating in the Sarajevo area. At the end of 1996, the balance sheet of the bank was DM 36.8 million, shareholders' equity DM 2.4 million, operating income DM 3.6 million and net income DM 273,000. The bank has 50 staff and has recently opened branches in Gorazde, Visoko and Mostar.

EBRD Finance

The EBRD is proposing to invest DM 2 million (ECU 1 million) equity in Market Banka's share capital, which shall represent approximately 35 per cent of the bank's DM 5.8 million paid-in equity after the EBRD's contribution and 20 per cent of the voting rights. The investment will be in the form of newly issued convertible preference shares, with a prescribed rate of return priced at Libor plus a commercial margin.

Project Cost

n/a

Environmental Impact

Market Banka will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, Market Banka will require its borrowers to comply, at a minimum, with national/local health, safety, environmental and public consultation requirements.

Technical Cooperation

A twinning arrangement with a foreign partner acceptable to the EBRD will be a precondition to the EBRD's investment. This programme is expected to take place over a period of 24 months and will cover all areas where external assistance is deemed necessary. The total cost for this technical assistance programme is expected to be approximately ECU 1.7 million, to be funded by the EU Phare Bangkok Facility.

Company Contact

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

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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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