PBK EQUITY INVESTMENT

Location:

Slovak Republic

Project number:

4465

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

16 Dec 1997

Status:

Completed

PSD disclosed:

14 Nov 1997

 

Project Description

The project consists of a subscription to newly issued PBK shares. Following this investment of SK 340 million (ECU 9.1 million), the EBRD will own about 20 per cent of PBK's capital and voting rights.

The project aims to strengthen the capital base of a regional bank in the Slovak Republic. This will allow it to take full advantage of future growth opportunities in the market place and to support its on-lending activity to private sector companies of prime credit quality.

Transition Impact

The project will increase competitive pressure in the Slovak banking sector and is likely to contribute to innovation of services and products and to improve the service provided to customers. An indirect contribution to the transformation of the local economy will result from the on-lending to local enterprises on the basis of criteria and standards which are of international quality levels.

The Client

Priemyselná banka a.s. Košice (PBK) was established in December 1991 by the Confederation of Industry of the Slovak Republic and started its operations in 1992. Its head office is located in Košice, the second-largest industrial city in the country. Since its establishment, PBK has focused its activities on providing corporate banking services, in particular short and medium-term loans to its local clients. PBK's main objective is to become the leading private medium-sized bank in the central eastern part of the Slovak Republic.

EBRD Finance

The EBRD will subscribe to newly issued ordinary shares of PBK. Following the investment of SK 340 million (ECU 9.1 million), the EBRD will own about 20 per cent of the capital and voting rights of PBK.

Project Cost

The total project cost is SK 340 million (ECU 9.1 million).

Environmental Impact

The project has been classified as FI and therefore does not require an Environmental Analysis or an Environmental Audit. PBK has already developed and adopted, in the conduct of its business activities, environmental procedures in accordance with the Bank's Environmental Guidelines for Financial Intermediaries.

Technical Cooperation

None.

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

Public Information Policy (PIP)

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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.