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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 | 11336 |
| Project name | Erste & Steiemarkische Bank d.d. Zagreb II |
| Country | Croatia |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Erste & Steiermarkische Bank d.d. |
| Environmental category | C |
| Date SPI disclosed | February 5, 2002 |
| Projected board date | March 7, 2002 |
| Status | Active |
| Previous Events | Invested: October 25, 2002
Signed: September 3, 2002
Approved: April 18, 2002 |
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| Project sponsor and major shareholders of project company |
| Erste & Steiermarkische Bank d.d. (ESB or the bank) is majority-owned by two Austrian banks: Erste Bank (EB) and Steiermarkische Bank (SB). Other than EB and SB, no single entity owns more than 5%. Both foreign shareholders play an active role in the ESB. As of June 30, 2001, EB had total assets of USD71 billion equivalent and a net worth of USD1.6 billion equivalent. At year-end 2000, SB reported total assets of USD6.6 billion equivalent and equity USD398 million equivalent. |
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| Total project cost and proposed IFC investment |
| The proposed project consists of a long-term (up to 10 years) credit line of up to EUR30 million to ESB. |
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| Location of project and description of site |
| ESB is based in Zagreb and has a network of 34 retail branches concentrated in the Zagreb, Bjelovar, and Northern Croatia regions. |
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| Description of company and purpose of project |
| ESB was established in September, 2000 as the successor bank to Bjelovarska Banka d.d., Trgovacka Banka d.d., and Cakovecka Banka d.d. Before the merger, all three banks were under common control of EB and SB. The acquisition and subsequent merger of the three institutions is consistent with the shareholders' strategy of creating a nationwide universal commercial bank, with a focus on SMEs and retail. Recently, the bank has increased its emphasis on residential housing mortgages. The housing sector is a key government priority due to the housing shortage and associated social and labor mobility issues, the poor condition of existing housing stock, and the economic stimulus possible from housing construction. The proceeds of the project would be used for on-lending to private individuals for residential mortgages. |
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| Environmental and social issues - Category C |
This is a category C project according to IFC's environmental and social review procedure as this is a loan for on-lending to private individuals for residential mortgages. As a result of an earlier IFC investment ESB has an IFC approved Environmental Management Plan (dated January 14, 2000). The EMP details ESB's environmental policy, project review procedures, annual reporting requirements and environment staffing as well as their roles and responsibilities. Based on 2 years of operational experience ESB has agreed that the EMP needs some minor revision. The revised EMP will be reviewed and approved by IFC.
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| To contact the project company, please write to: |
Mr. Boris Centner, Member of the Management Board
Varsavska 3-5 Zagreb 10000
Phone: 385-1-4561-901
Fax: 385-1-4561-900 |
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