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