INTESA SANPAOLO BANKA BIH (F. UPI)

Location:

Bosnia and Herzegovina

Project number:

25218

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

19 Nov 2002

Status:

Completed

PSD disclosed:

07 Oct 2002

Project Description

The proposed project would consist of the EBRD's participation in UPI Banka's capital increase for an amount of around EUR 2.4 million and extension of a second credit line in the amount of EUR 2.5 million.
The capital increase is aimed at supporting UPI Banka’s medium term business plan and revised strategy, which envisages an increase in lending activities, branch expansion and IT system development.
The credit line will ensure that UPI Banka is able to increase its medium-term lending to the SME sector.
 
 

Transition Impact

The proposed operation will contribute to transition by supporting the implementation of UPI Banka’s new strategy and business plan. The strengthening of this financial intermediary is important to improve the level of competition within a financial system in need of additional restructuring and consolidation. Further long and medium term lending to SMEs is also needed to ensure that financial resources provided to local enterprises are channelled within sound banking business principles.

The Client

UPI Banka was established in 1972 as part of a large holding company whose activity was production, processing and sale of agricultural products. In December 1991 the bank split from the conglomerate and was established as an independent joint stock bank. As of end-2001, UPI Banka had total assets of KM 138.9 million (EUR 71.0 million) and total equity of KM 19.1 million (EUR 9.9 million).
 
UPI Banka has been a client of the EBRD since 1999 through its participation in the SME Framework Facility for Bosnia & Herzegovina for an amount of EUR 2.5 million and in the Trade Facilitation Programme.

EBRD Finance

EBRD financing will consist of an equity participation of around KM 4.6 million (EUR 2.4 million) and an extension of the second SME credit line of EUR 2.5 million under the Extended SME Framework Facility for Bosnia & Herzegovina.

Project Cost

The total amount of the capital increase will be around KM 6.7 million (EUR 3.4 million). The total amount of the Extended SME Framework Facility for Bosnia & Herzegovina, which will be offered to a number of banks in the country, is EUR 15.0 million.

Environmental Impact

The financial intermediary is required to continue to comply with the Bank's environmental requirements for Financial Intermediaries which include, inter alia, (i) adopting and implementing environmental due diligence procedures; (ii) ensuring borrowers comply with national environmental, health and safety standards at a minimum; (iii) complying with the FI Exclusion List and (iv) submitting an annual environmental, health and safety report to EBRD.

Technical Cooperation

A TC project will be structured to assist UPI Banka in improving its risk management both in assets and liabilities area and credit risk (subject to separate approval by the EBRD's management).

Company Contact

 

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

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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.