Komercijalna Banka Convertible Preference Shares



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

30 Sep 2009



PSD disclosed:

04 Dec 2009

Project Description

The EBRD is considering an investment of RSD 4.6 billion alongside the International Finance Corporation, DEG (Deutsche Investitutions- und Entwicklungsgesellschaft) and Swedfund as part of an RSD 11.4 billion capital increase of Komercijalna Banka, Belgrade. The capital increase will be in form of a new class of non-voting preference shares, qualifying as tier 1 capital, that are convertible upon notice by the investor from 1 January 2013 for a period of 4.5 years into newly issued ordinary shares. The purpose of the investment is to support a systemically important bank in Serbia at a time of crisis by (i) equipping KMBN with a capital buffer in light of the expected deterioration of the Serbian economy; (ii) enabling KMBN to increase the capital in its subsidiaries in Montenegro and Bosnia and Herzegovina and (iii) allowing KMBN to maintain its loan portfolio and lending operations to the real economy, thereby maintaining or increasing market share in Serbia.

Transition Impact

The investment will support a systemically important bank in Serbia at a time of crisis, thus ensuring that Komercijalna Banka continues to develop into an attractive asset to be privatised when market conditions allow. In addition, the investment will also facilitate the privatisation of the bank more directly through a comprehensive set of privatisation milestones which have been agreed with the Serbian government.

The Client

Komercijalna Banka a.d. Beograd

EBRD Finance

RSD 4.6 billion of newly issued convertible preference shares.

Project Cost

RSD 4.6 billion

Environmental Impact

Categorised FI under the EBRD’s Environmental and Social Policy 2008. KMBN, an existing client of the EBRD, will be required to comply with the Bank's Performance Requirements 2 (Labour and Working Conditions) and 9 (Financial Intermediaries) which include implementation of the Bank's Environmental and Social Procedures for Corporate Lending across its lending and investment portfolio, as well as adherence to EBRD's Environmental and Social Exclusion and Referral List. KMBN 's past environmental performance and reporting has been satisfactory, and only a few adjustments to KMBN 's existing Environmental Procedures will be required to fully ensure compliance with PR9. A refresher training on environmental and social risk management will be provided due to EBRD's growing exposure to this FI. KB will be required to continue reporting on environmental and social matters and also the implementation of PRs 2 and 9.

Technical Cooperation

It is expected that Komercjialna Banka will continue to benefit from Technical Cooperation to complete the implementation of the Institution Building Plan. The budget has amounted to EUR 1.9 million, and the programme has been ongoing since September 2006. The source of financing is the Canada-EBRD TC Fund for the South-East Europe Action Plan (EUR 1.3 million), the EBRD Western Balkans Fund (EUR 0.3 million) and the EBRD Shareholders’ Special Fund (EUR 0.3 million).

Company Contact

Komercijalna Banka
Svetog Save 14
11000 Beograd
E-mail: posta@kombank.com
Tel: (381) 11 30 80 100
Fax: (381) 11 344 13 35

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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