Erste Bank Hungary Equity Investment

Location:

Hungary

Project number:

47110

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

04 May 2016

Status:

Disbursing

PSD disclosed:

01 Apr 2016

Translated version of this PSD: Hungarian

Project Description

EBRD is considering an equity investment in Erste Bank Hungary alongside the State of Hungary.

Erste Group Bank will remain the controlling shareholder.

Project Objectives

The Project will contribute to strengthening of the capitalisation of the bank and its strategy of increased engagement in supporting the real economy in Hungary.

Transition Impact

Transition impact stems from the following:

  • Demonstration of successful restructuring
  • Market expansion

Client Information

Erste Bank Hungary (EBH), part of Erste Group, is the sixth largest bank Hungary and the second largest retail lender, operating via the third largest branch network in the country (128 branches). While predominantly a retail bank, EBH operates a universal banking model and offers a complete range of banking and other financial services to its customers, such as savings accounts, asset management, consumer credit and mortgage lending, project finance, foreign trade financing, corporate finance, capital market and money market services, FX trading, leasing and factoring. EBH is 100% owned by Erste Group Bank AG.

Environmental and Social Summary

Categorised FI. EBH is required to comply with EBRD's Performance Requirements 2, 4 and 9 and submit annual reports to the EBRD on environmental and social matters and on the implementation of the Performance Requirements.

Technical Cooperation

None.
 

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

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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