Participation in a capital increase in ProCredit Bank Serbia from currently US$ 12 million (€ 10 million) to € 20 million necessitated by a combination of fulfilling minimum capital requirements in the short-term (first tranche for € 6 million) and supporting the dynamic business development of ProCredit Bank Serbia in the medium-term (second tranche for € 4 million).
Additionally, a loan of € 10 million is to be provided to ProCredit Bank Serbia for on-lending to micro and small enterprises (MSEs).
The project is expected to have a significant impact on the transition process. ProCredit Bank Serbia will provide continuous support to micro and small enterprises, including those in the agricultural sector which would otherwise have little or no access to formal sector finance.
ProCredit Bank Serbia will also support the development of the financial sector by operating as a best practice institution committed to the principles of complete transparency and strong corporate governance. The capital increase will also support the expansion of MSE lending activities to rural and remote areas.
ProCredit Bank Serbia (Formerly Microfinance Bank of the Republic of Yugoslavia - MFB) was established in April 2001 to provide financial services to micro and small enterprises.
The founding shareholders are
Commerzbank AG (16.7%)
ProCredit Holding AG (formerly Internationale Micro Investitionen - IMI AG) (53%)
ProCredit Bank Serbia has at present 35 branches and outlets in 21 cities. Further branch expansion is expected in 2006.
Equity investment of € 1.6 million in two tranches (€ 1 million and € 0.6 million). Loan of € 10 million in two tranches.
€ 50 million (€ 10 million equity, € 40 million debt)
ProCredit Bank Serbia will continue to carry out its operations in accordance with the EBRD's Environmental Procedures for Small and Micro Loans. In implementing these procedures, it will require its borrowers to comply, with national health, safety, environmental, and public consultation requirements.
ProCredit Bank Serbia - Head Office Belgrade
Bulevar despota Stefana 68c
Tel. +381 11 20 77 906
Fax +381 11 20 77 905
For business opportunities or procurement, contact the client company.
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