FIRST INVESTMENT BANK (EQUITY)

Location:

Bulgaria

Project number:

3410

Business sector:

Depository Credit (banks)

Notice type:

Private

Environmental category:

FI

Approval date:

20 May 1997

Status:

Completed

PSD disclosed:

16 Apr 1997

Project Description

Subscription to newly issued shares of First Investment Bank Ltd., representing 20 per cent of the Bank's capital in an amount not in excess of US$ 6 million (ECU 5.2 million).
The principal objectives of the project are to:
  • increase FIB's capital base, thus further improving its capital adequacy and anticipating the Bulgarian National Bank's requirement for increased minimum capital for licensed banks;
  • increase FIB's funding resources in its continued transformation towards a full-service universal bank;
  • enable FIB to develop its loan portfolio, increase its term lending to private enterprises, and raise its single obligor limits;
  • encourage international banks to open up their lending exposure limits to FIB and to Bulgarian banks in general.

Transition Impact

The EBRD will be promoting private enterprise and Bulgaria's transition towards a market-oriented economy, as FIB will use the proceeds of its capital increase to lend to its private sector clients. Furthermore, the project strengthens a healthy bank in an otherwise less than stable banking sector.

The Client

First Investment Bank (FIB), founded in 1993, is 100 per cent privately owned. The client's objective is to become a full-service corporate bank catering for the emerging private sector in Bulgaria.

EBRD Finance

The EBRD will subscribe to newly issued shares of FIB representing 20 per cent of FIB's capital.

Project Cost

The aggregate subscription price will not be in excess of US$ 6 million (ECU 5.2 million).

Environmental Impact

FIB will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, FIB will require its borrowers to comply with national/local health, safety, environmental and public consultation requirements. FIB will submit annual environmental reports to the EBRD.

Technical Cooperation

None

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.