Cacanska Banka - Equity Investment



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

05 Sep 2006



PSD disclosed:

23 Jun 2006

Project Description

The proposed project is an equity investment in Cacanska Banka (CB) as the first step towards full privatisation through sale to a strategic investor in 3 to 4 years. EBRD’s investment will help CB to grow into a strong and larger regional bank through expansion of the branch network and introduction of new products, with a clear focus on SME financing. In addition, EBRD’s presence will be particularly important for the institutional strengthening of CB in preparation for full privatisation through the design and implementation of a comprehensive institution building plan, focusing on key areas as corporate governance, credit and risk management procedures, internal re-organisation and upgraded customer services.

The main objective of the EBRD investment is the development of CB into a modern and efficient institution, capitalising on its regional focus and leading position in SME financing in one of the most active SME regions in Serbia.

Transition Impact

The proposed project is expected to contribute to the transition process of the Serbian banking sector and the overall development of the targeted region. The transition impact potential of the project is built around the following elements:

  • Strengthening of the bank in preparation for full privatisation by upgrading its key business and control functions and enhancing corporate governance through an institution building plan.
  • Facilitation of the transfer of ownership to the private sector through EBRD involvement and conditionality
  • Contribution to the enhancement of financial intermediation through improvement of access to finance for SMEs outside the capital Belgrade.

The Client

CB is a regional bank based in Čačak, central Serbia, with primary focus on SME financing. CB is majority owned by the State, which directly and indirectly holds 60.3% of the bank’s capital.

CB recorded total assets of EUR 41.7 million and equity of EUR 18.3 million as at end December 2005.

EBRD Finance

Acquisition of up to 25% of CB’s capital by subscribing to newly issued shares.

Environmental Impact

Screened FI.

CB is required to implement EBRD’s Environmental Procedures for EBRD Intermediated Financing through Local Banks across all its operations, which include: (i) adherence to EBRD’s Environmental Exclusion & Referral Lists; (ii) compliance by sub-borrowers with the national environmental, health and safety legislation; (iii) reporting on any material damages and/or accidents associated with operation; and (iv) submission of Annual Environmental Reports to EBRD.

Technical Cooperation

As mentioned above, EBRD’s equity investment will be complemented by an institution building plan. EBRD is procuring donor funds for this programme.

CB is currently benefiting from a technical assistance programme of EUR 640 thousand, funded by the European Agency for Reconstruction (EAR), for the implementation of an SME credit line under EBRD’s Western Balkans SME Finance Facility.

Company Contact

Čacanska Banka a.d.
32000 Čačak - Pivarska 1

Tel: (+381) 32 302 203
Fax: (+381) 32 225 048 or 32 348 898



Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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