|
|
 |
 |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
| |
| Project number | 10377 |
| Project name | Bulbank AD |
| Country | Bulgaria |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | UniCredit Bulbank AD |
| Environmental category | FI |
| Date SPI disclosed | November 10, 2000 |
| Projected board date | December 18, 2000 |
| Status | Active |
| Previous Events | Invested: April 26, 2001
Signed: April 23, 2001
Approved: April 10, 2001 |
|
| Project sponsor and major shareholders of project company |
| The Project Sponsor and majority shareholder of the Project Company is Unicredito Italiano (UCI), the third largest banking group in Italy with total assets and equity of USD 174 billion equivalent and USD 7.8 billion equivalent, respectively, at June 30, 2000. With a market capitalization of about USD 26 billion equivalent, UCI is the largest Italian bank by this measure, and is rated A+ by Standard & Poors, Aa3 by Moody's, and AA- by Fitch. Having participated in the recent consolidation of the Italian banking sector, UCI has shifted its focus increasingly to Emerging Europe where it now ranks third among Western European Banks in terms of banking assets in this region. UCI recently won the privatization tender for Bulbank A.D. ("Bulbank") in Bulgaria. Following its privatization, the shareholding of Bulbank is: UCI: 93%; Allianz (the German insurer): 5%; and local Bulgarian shareholders: 2%. It is envisioned that Simest and IFC would become minority shareholders pending their respective internal approvals. |
|
| Total project cost and proposed IFC investment |
| The acquisition of a controlling stake in Bulbank by UCI and Allianz implied a valuation for 100% of the bank of EUR 367 million. IFC is considering a potential equity stake of around 5%, which would imply an investment of around EUR 18 million. |
|
| Location of project and description of site |
| Bulbank is based is Sofia, Bulgaria and has a nation-wide branch network and business focus. |
|
| Description of company and purpose of project |
Bulbank was founded in 1964 and for over 25 years acted as the country's foreign trade bank. Following the economic transition of 1991, Bulbank was transformed into a full-service commercial bank and is now Bulgaria's largest commercial bank, with total assets of USD 1.2 billion equivalent at June 30, 2000. Bulbank has a nation-wide distribution network, strong name recognition, and client relationships with prominent Bulgarian enterprises, and increasingly, medium-sized private enterprises. As such Bulbank has a strong platform for expansion of lending and the introduction of other products.
Bulbank is a high-profile bank in the Bulgarian economy. Its successful and transparent privatization was key to both the public's comfort in the privatization process, and the impact of this important institution on the local economy. With the leadership of UCI; its partnership with Allianz, one of the world's largest insurers; and the support of IFC, Bulbank will seek to increase its lending to Bulgaria's underserved business and retail sectors and to introduce new products, thus broadening and deepening the financial markets. Further, given Bulbank's importance to the Bulgarian financial sector and economy, UCI and the Government value IFC's role as a bridge between the private and public sectors. |
|
| Environmental and social issues - Category FI |
This is a category FI Type 1 project. Bulbank will be required to establish environmental procedures designed to ensure that its corporate clients comply with Bulgarian environmental, health and safety requirements. IFC will receive an annual environmental report from Bulbank, which will designate an Environmental Manager who will attend specialist environmental training provided by IFC.
|
|
|
| To contact the project company, please write to: |
| Suzannah H. Carr, Investment Officer, IFC, scarr@ifc.org |
|
|
|