Addiko Bank

Location:

Regional

Project number:

46316

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

26 Nov 2014

Status:

Disbursing

PSD disclosed:

26 Nov 2014

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

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.

Project Objectives

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

ETI score: null

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.

Client Information

ADDIKO BANK AG

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 Summary

Up to EUR 50 million in equity financing.

Total Project Cost

Up to EUR 250 million.

Environmental and Social Summary

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 and Grant Financing

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

Company Contact Information

Kristina Zagar
ZagarK@ebrd.com
+0044 (0)20733866285

Implementation summary

Addiko Bank is a regional financial group operating in South East Europe and headquartered in Vienna, focusing on retail and SME clients and offering advanced technological solutions such as digitalised banking services.

The banking group was established as part of the resolution of the nationalised Austrian lender Hypo Alpe Adria Group and acquired by Advent International, a global private equity firm, and the EBRD in 2015. Following the group's successful restructuring and the reorientation of its business, Addiko was returned to the market with an IPO in June 2019. After Addiko's successful IPO in July 2019, the EBRD has reorganised its share ownership in Addiko Bank and swapped an indirect stake via a private special purpose vehicle jointly owned with Advent International, with a direct stake in Addiko. As a result the EBRD holds a stake of approximately 8.4 per cent of Addiko.

The Project contributed to (i) the demonstration of a successful restructuring for a key banking network in the South East Europe region (ii) setting of highest standards of corporate governance, business conduct and sound risk management.

PSD last updated

09 Jul 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

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 more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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