VB SERBIA EQUITY

Location:

Serbia

Project number:

27313

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

29 Jul 2003

Status:

Complete

PSD disclosed:

23 Jun 2003

Project Description

The proposed project will allow Trust Banka ("TB") to become one of the few fully foreign -owned commercial banks in the country. The project will consist of 100% acquisition of TB's shares, by and Osterreichische Volksbank AG ("VB"), and a capital increase by EBRD and VB.
The project has following objectives:
  1. to support the strategic investor VB in entering the Yugoslav banking markets
  2. to promote the development of a private financial institution in Serbia and Montenegro with the potential of becoming an important financial intermediary for the local economy
  3. to assist the bank in strengthening its capital base and support the bank's development and restructuring;
  4. to provide guidance and institutional building through EBRD'seat on the Supervisory Board; and
  5. to attract additional funding sources to promote the bank's lending activities.

Transition Impact

Transition impact in this project is twofold. Firstly, the Bank is promoting development in the Serbian banking sector as well as enhancing competition. Secondly, the project will set and demonstrate high corporate governance standards to Serbia & Montenegro's financial sector. By controlling the bank, the Sponsor will work with the EBRD support on establishing strong management structures, efficient lending procedures and prudent risk management. The Bank will be represented on the bank's Supervisory Board.

The Client

Trust Banka AD Beograd, a small private bank in Serbia, oriented to provide a broad range of banking services to SMEs. The bank employs 36 people and operates in Belgrade.
Oesterreichehische Volksbanken AG, as the Sponsor, an Austrian bank with assets of approximately €20 billion and capital base of €730 million, rated A 2 by Moodys.

EBRD Finance

Equity investment of €2.6 million to acquire 15% shareholding through subscription to new shares in a capital increase.

Project Cost

Up to €17 million.

Environmental Impact

TB will be required to implement environmental procedures in accordance with EBRD's "Environmental Procedures for Intermediated Lending through Local Banks". TB will also be required to adhere to the Bank's Environmental Exclusion List. Clients of TB should comply with national requirements for environmental, health and safety.

Technical Cooperation

None.

Company Contact

Gordana Majstorovic
Head of International Dept.
Trust Banka
Bulevar Umetnosti 16a
1170Belgrade
Serbia and Montenegro
Tel: + 381 11 146 487
 

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)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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