SLAVONSKA BANKA D.D. OSIJEK (EQUITY)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 3392

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 3392

Status Complete

Location

Croatia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

07 Apr 1998

Disclosure date

16 Apr 1998

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

Equity investment and five-year cross-currency convertible bank-to-bank loan.

The main objective of the project is to achieve the final privatisation and stabilisation of SBO by buying out the Croatian State Agency for Deposit Insurance and Bank Rehabilitation and granting a long-term financing facility to SBO. As a result, SBO will be legally removed from its rehabilitation status. The Bank will be instrumental in bringing a strategic investor to SBO's ownership, which will contribute to setting up sound corporate governance standards, and will play a key role in the management and business development of SBO.

Transition Impact

The ongoing privatisation process in the banking sector is vital to the transition process in Croatia. The project will contribute to this process as it constitutes the first privatisation of a rehabilitated bank. The foreign participation will contribute to setting standards for good corporate governance and business conduct and will have very important demonstration effects for future privatisations. The EBRD investment would also help SBO in achieving a listing on the Zagreb Stock Exchange, thereby promoting the development of the still nascent capital market in Croatia. Furthermore, SBO is the banker of many small and medium-sized private sector enterprises in smaller cities and rural areas where there is urgent need for finance. The provision of medium and long-term funding would significantly improve the business environment in a region badly affected by the war.

The Client

Slavonska Banka d.d. Osijek (SBO) is a commercial bank organised as a joint-stock company and incorporated under the laws of Croatia. At the end of 1997, SBO ranked as the seventh-largest bank in Croatia by total assets and is the major bank in the Slavonija region.

EBRD Finance

Purchase of approximately 17.5 per cent of SBO's share capital and a five-year cross-currency convertible loan.

Project Cost

The project will consist of an EBRD equity investment of EUR 4.4 million and a convertible DM 20 million loan, of which 50 per cent will be financed by the EBRD. In total, the EBRD's aggregate net investment will not exceed the equivalent of EUR 10 million.

Environmental Impact

SBO will implement the EBRD's "Environmental Procedures for Intermediated Lending through Local Banks", including adherence to the FI Environmental Exclusion List. The requirement to provide evidence of compliance with Croatian health, safety, environmental and public consultation requirements will present SBO's borrowers with a strong incentive for regulatory compliance. SBO will thus support the monitoring and enforcement activities of the regulatory authorities and contribute to the enhancement of the overall environmental performance level of the small and medium-sized enterprise sector in Croatia. SBO will submit annual environmental reports to the Bank.

Technical Cooperation

None

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

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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