Hypo Group Alpe Adria AG

Location:

Regional

Project number:

46316

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

26 Nov 2014

Status:

Disbursing

PSD disclosed:

26 Nov 2014

Project Description

The EBRD is considering joinig Advent International’s acquisition of the Hypo Group Alpe Adria AG, formerly known as the Hypo SEE Holding AG (the “Holding”), as a minority shareholder. The Holding, incorporated in Austria, owns a network of subsidiary banks and leasing companies in Bosnia and Herzegovina, Croatia, Montenegro, Serbia and Slovenia.

The project is implemented by a share subscription, jointly with Advent, to a vehicle in Luxembourg for the sole purpose of acquiring the Holding. EBRD will subscribe for a 20% stake.

The EBRD’s investment will contribute to the turn-around of the Holding, resulting in a commercially sustainable banking group exclusively focused on the South East Europe region.

Transition Impact

Transition impact will derive from:
(i) the demonstration of successful restructuring of a distressed asset into a commercially sustainable operation by focusing on a new product mix and increasing the share of consumer and MSME loans; and
(ii) setting standards of best corporate governance and business conduct by ensuring highest standards of corporate governance, business conduct and sound risk management.

The Client

The EBRD, jointly with Advent, will own an investment vehicle in Luxembourg that will acquire the Holding.

The Holding is currently 100% owned by FIMBAG (Finanzmarktbeteiligung Aktiengesellschaft des Bundes), whose ultimate parent is the Republic of Austria.

Advent is an American global private equity firm focused on international buyouts, growth and strategic restructuring in North America, Latin America, Europe and Asia.

EBRD Finance

Up to EUR 50 million in equity financing.

Project Cost

Up to EUR 250 million.

Environmental Impact

Categorised FI. Environmental and Social Due Diligence has shown that various HAA SEE bank branches have the capacity to implement the EBRD's PR2 and PR9 requirements. Advent Group will be required to comply with PR 2 and 9 and ensure that the applicable E&S procedures are continually applied and implemented across the network and report annually to the EBRD on the implementation of these procedures.

Technical Cooperation

TC for corporate governance review may be considered during the life of the Project.

 

Business opportunities

For business opportunities or procurement, contact the client company.

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