Proposed acquisition of up to 22% of ordinary shares and voting rights in Privredna Banka Zagreb (PBZ) in the final phase of the bank's privatisation.
The Project will play a pivotal role in the completion of the PBZ’s privatisation process. It will support the initiative of both the Croatian Government and IBCI to finalise the State's participation in the bank. The investment will also bring fresh support to the development plans of PBZ and further expansion in the region as one of the most prominent universal commercial banks providing services to corporates and individuals.
The transition impact of this transaction is twofold. Through the support of PBZ's privatisation the EBRD would strengthen the shareholders’ structure of the bank and create optimal conditions for further development including enhancement of corporate governance. Secondly, the EBRD’s exit strategy through an Initial Public Offering (IPO) would assist the future development of capital markets and pension reforms. Additionally, the EBRD's experience in privatisation and its institutional role would benefit IBCI.
PBZ is the second largest bank in Croatia with total assets in excess of €4.2 billion and capital base of €393 million as of 31 December 2001 (IAS audited). PBZ accounts for around 22.8% of the total Croatian banking sector assets.
At the end of 2001, the bank had 151 branches, 16 subsidiaries including three daughter banks and almost 3,700 employees. PBZ is one of two banks covering the whole territory of Croatia.
PBZ has consistently been one of the leading financial institutions in the country, accounting for 18% of total banking sector deposits. At the end of March 2002, PBZ held 21.4% market share in retail loans and 19.6% in corporate loans.
Up to €121 million to acquire up to 22% of PBZ’s ordinary shares.
Up to €121 million.
PBZ will be required to adopt and implement environmental procedures in accordance with EBRD's "Environmental Procedures for Intermediated Lending through Local Banks". From the point of signing, PBZ will also be required to adhere to the Bank's Environmental Exclusion List and clients of PBZ should comply, at a minimum, with national requirements for environmental health and safety.
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Text of the PIP