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| 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) |
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| Project number | 10561 |
| Project name | Raiffeisen Bank Bosnia |
| Country | Bosnia and Herzegovina |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Raiffeisen Bank d.d. Bosnia and Herzegovina |
| Environmental category | FI |
| Date SPI disclosed | November 21, 2000 |
| Projected board date | December 31, 2000 |
| Status | Active |
| Previous Events | Invested: March 6, 2003
Signed: January 13, 2003
Approved: June 26, 2002 |
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| Project sponsor and major shareholders of project company |
| Raiffeisen Banka Bosnia and Herzegovina (RBBH, formerly Market Banka) is the leading commercial bank in Bosnia. In July 2000, Raiffeisen Zentralbank (RZB), the central institution of the three-tier cooperative Raiffeisen banking sector in Austria, acquired 90% in RBBH. RZB has subsidiaries in ten Central and Eastern European countries and its network is among the biggest in the region. The network was mainly developed through greenfield operations and organic growth supplemented occasionally by acquisitions. |
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| Total project cost and proposed IFC investment |
| The proposed IFC loan to RBBH is DEM 20 million (US$ 8.9 million) for IFC's own account. |
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| Location of project and description of site |
| RBBH is headquartered in Sarajevo and has 6 branches (Bihac, Gorazde, Mostar, Tesanj, Tuzla, and Visoko). Investments will be made in all parts of Bosnia (including Republika Srpska - RBBH plans to open a branch in Banja Luka). |
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| Description of company and purpose of project |
| RBBH is currently the leading commercial bank in Bosnia and operates in all parts of the country. As of June 30, 2000 RBBH had total assets of KM (=DEM) 167 million (USD 80 million) and equity of KM 22.3 million (USD 10 million). The project will support the fledgling Bosnian SME sector by providing RBBH with a seven-year loan of up to DEM 20 million for on-lending to SMEs and retail loans. The proceeds of IFC's loan will be used to (i) refinance existing working capital loans to Bosnian SMEs (loans for investments, which - because of the lack of long term loans - were financed with short term loans) (ii) extend term loans to Bosnian SMEs to support new investments and (iii) grant loans to private individuals to refurbish or buy apartments/houses. |
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| Environmental and social issues - Category FI |
This is a Category FI Type 2 project according to IFC's environmental and social review procedure. RBBH will be required to establish an environmental management system to ensure that sub-projects comply with host country environmental, health and safety standards and applicable World Bank/IFC policies and guidelines. IFC will receive an annual environmental report on the credit line.
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| To contact the project company, please write to: |
| RReichel@ifc.org |
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