NLB TUTUNSKA BANKA (SYNDICATED LOAN I)

Location:

FYR Macedonia

Project number:

33800

Business sector:

Depository Credit (banks)

Notice type:

Private

Environmental category:

FI

Target board date:

14 Dec 2004

Status:

Completed

PSD disclosed:

10 Nov 2004

Project Description

The proposed loan will enable the bank to provide short and medium term loans to its private sector corporate customers in an environment where banking sector intermediation level is still low. The loan will contribute towards diversification of the bank’s funding base and the EBRD’s lead in the Project assists Tutunska Banka in successfully approaching international commercial debt market.

Transition Impact

Considering the low banking sector intermediation level in FYR Macedonia where the domestic credit to GDP stood at 20% at the end of 2003, the Project is expected to have a positive impact on the country’s economic development by providing increased access to companies to term financing and on the development of the banking sector through supporting the growth of a financial institution which applies best banking practice in its operations and is in the forefront of product development. This will be the first internationally syndicated loan for a financial institution in FYR Macedonia since late 1990s attracting new investors to the FYR Macedonia banking market.

The Client

Tutunska Banka was established in 1985 as an internal bank for tobacco industry in Macedonia. To date, the bank has grown to be one of the leading universal commercial banks servicing a wide range of corporate and retail customers from all branches of the economy. It is the third largest bank by total assets and the market leader in profitability and efficiency indicators. Tutunska Banka is 76.6% owned by Nova Ljubljanska banka, d.d., Slovenia and its group companies. 

EBRD Finance

Senior debt for on-lending to private sector corporate customers in the aggregate amount of up to € 20 million with an A/B loan structure, B loan to be syndicated.

Project Cost

Up to € 20 million.

Environmental Impact

Tutunska Banka is required to apply environmental procedures in accordance with EBRD’s Environmental Procedures for Local Banks (including the Environmental Referral List and Exclusion List). In implementing these procedures Tutunska Banka will assess potential environmental issues associated with sub-projects, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.

Technical Cooperation

None.

Company Contact

Tutunska Banka
12 Udarna brigade bb
1000 Skopje, FYR Macedonia
Mr Gjorgji Jancevski, First General Manager
E-mail: jancevski@tb.com.mk
Ljube Rajevski, Second General Manager
E-mail: rajevski@tb.com.mk
Lile Nastoska, Director, Corporate Banking
E-mail: nastoska@tb.com.mk
Phone: (389 2) 3105 601
Fax: (389 2) 310 5681
 

Business opportunities

For business opportunities or procurement, contact the client company.

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