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Summary of Project Information (SPI) |
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| Project number | 8757 |
| Project name | Ceskoslovenska Obchodni Banka A.S. |
| Country | Czech Republic |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Cekoslovensk? Obchodnf Banka a.s. |
| Environmental category | FI |
| Date disclosed | May 1, 1998 |
| Status | Completed |
| Previous Events | Invested: September 29, 1999
Signed: June 24, 1999
Approved: July 23, 1998 |
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Summary Of Project Information (SPI)
| Project Name | CZECH REPUBLIC: CESKOSLOVENSKA OBCHODNI BANKA, A.S. |
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| Region | Europe |
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Project No008757
Projected Board DateMay 31, 1998
Company NameCESKOSLOVENSKA OBCHODNI BANKA, A.S.
Technical Partner and/or Major Shareholders
Czech National Bank-26.51%, Ministry of Finance of the Czech Republic-19.59%, National Property Fund of the Czech Republic-19.59%, National Bank of Slovakia-24.13%, employees and other shareholders-10.0%.
Project Cost Including proposed IFC investment
Up to US$75 million.
Location of project and Description of site
Prague, Czech Republic
Description of Company and Purpose of Project
The project is to support the privatization of Ceskoslovenska Obchodni Banka, A.S. (CSOB, the Bank), the fourth largest state-owned bank in the Czech Republic, through an equity investment of up to US$75 million for an up to 10% stake in the Bank along with a strategic partner. IFC's investment (i) will provide comfort and support to both strategic investors and local authorities with respect to the privatization of one of the largest Czech banks; and (ii) is expected to improve corporate governance. IFC's investment would be conditional upon the timing and terms of the privatization of CSOB. The Government has announced plans to privatize CSOB.
CSOB was established in 1964, with the primary responsibility of foreign trade financing and foreign payment operations. Following its financial consolidation in 1993, CSOB was transformed into a universal bank. The Bank currently has 67 branches throughout the Czech and Slovak Republics. As of June 30, 1997, the Bank had US$6.6 billion in assets, US$594 million in shareholders equity and generated US$55 million in net income during the first six months of 1997.
Environmental Category and Issues
This is a Financial Intermediary (FI) category project according to IFC's environmental review procedure. For relevant operations, CSOB will be required to establish an environmental management system to ensure that investments are consistent with the Government of the Czech Republic’s environmental, health and safety laws, regulations and standards as well as applicable World Bank policies and guidelines. In addition, IFC will assess CSOB's capability to carry out environmental reviews.
| Date SPI sent to PIC | May 1, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384 |
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