Framework for Financing Financial Institutions in Slovenia

Location:

Slovenia

Project number:

7044

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

20 Jul 1999

Status:

Completed

PSD disclosed:

02 Aug 1999

Project Description

A programme for the provision of up to EUR 50 million of debt, equity and quasi-equity financing to selected banks that are private, or in the process of privatisation, in Slovenia.

The Framework’s objective is to promote the development of a market-oriented economy in Slovenia by supporting the growth, development, and strengthening of quality financial institutions. The main use of proceeds for the funding under the Framework will be: to provide additional capital, in Tier 1 and Tier 2 form, and to provide additional long-term funding to be on lent in an agreed manner.

Transition Impact

Strengthening the financial sector will ultimately be of benefit to the real economy and small and medium-sized enterprises, as it will result in both improved financial intermediation in the economy and improved financial services for individuals and enterprises. All projects will aim to assist local Slovenian banks in diversifying and strengthening their funding base, which will in turn allow the local banks to expand their operations. It is also expected that the projects will contribute to the consolidation of the financial sector in the country.

The Client

Various Slovenian banks.

EBRD Finance

The first project will be a EUR15 million subordinated loan to Nova Ljubljanska Banka. The subordinated loan will be part of the EUR 25 million subordinated debt issue of Nova Ljubljanska Banka arranged by ABN AMRO.

Project Cost

EUR 50 million framework for financial sector activities in Slovenia.

Environmental Impact

Participating banks will be required to implement environmental procedures, based on the EBRD’s Environmental Procedures for Intermediated Lending through Local Banks, to their lending and investment activities. Environmental due diligence training will be offered to participating banks, including the development of tailored environmental procedures manuals, which will form the basis of environmental due diligence efforts. Participating banks will ensure that borrowers are not engaged in activities listed on the Bank’s Environmental Exclusion List, and require that borrowers are in compliance, at a minimum, with Slovenian health, safety and environmental requirements. In its "Environmental Performance Review of Slovenia" dated May 1997, the Economic Commission for Europe concluded that despite differences in legislative structure, the Slovene approach to environmental protection is compatible with that of the EU and that the final results are very similar. Slovenia has been working to harmonise its approach further, and is tightening legislation in key areas, such as water quality, waste management and nature protection.

By including environmental considerations in their lending and investment criteria and ongoing monitoring, the banks will be raising awareness of environmental issues within client companies and supporting the enforcement activities of the environmental authorities in Slovenia. The overall environmental impact of the operation will therefore be positive.

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)

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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.