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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 | 10123 |
| Project name | Komercijalna Banka |
| Country | Macedonia, Former Yugoslav Republic of |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Komercijalna Banka A.D. Skopje |
| Environmental category | FI |
| Date SPI disclosed | May 9, 2000 |
| Projected board date | June 25, 2000 |
| Status | Completed |
| Previous Events | Invested: August 7, 2001
Signed: June 22, 2001
Approved: December 20, 2000 |
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| Project sponsor and major shareholders of project company |
| The shareholders of Komercijalna Banka are predominantly Macedonian corporates with the largest being USJE Cementaria (7.4%), AD Fersped Skopje (3.2%), already privatized, and MZT FAM Skopje (2.4%). The European Bank for Reconstruction and Development is the second largest shareholder, holding a 6.5% stake which was acquired in 1996. |
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| Total project cost and proposed IFC investment |
| Project cost: Euro5 million. The project consists of a Euro5 million A Loan to Komercijalna Banka for the account of IFC. |
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| Location of project and description of site |
| Komercijalna Banka is second largest bank by assets (22% of total banking sector assets by the end of 1999) in FYR Macedonia, headquartered in Skopje. The bank has 33 branches, of which 29 are located in Skopje and 4 elsewhere in FYR Macedonia. |
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| Description of company and purpose of project |
Komercijalna Banka is a commercial bank, lending to both larger clients as well as small- and medium sized enterprises (SMEs). The bank provides most standard banking services such as deposit taking, trade related financial services, working capital loans, medium-term loans, letters of credit and guarantees. The project consists of a Euro5 million loan package for onlending to SMEs for modernization/expansion needs and working capital. The project would have the dual objectives of easing the medium-term funding constraint of private sector enterprises, including SMEs, and at the same time supporting the institutional development of the FYR Macedonian banking sector, through the imposition of prudential financial covenants. The loan would also lengthen the average maturity of the funding base for Komercijalna Banka.
With the project IFC would play an important role as provider of medium-term capital to SMEs, a sector which is severely underserved with term investment capital. In addition IFC will help the bank in appraising the subprojects by providing technical assistance to the credit department and help the bank in establishing prudent lending guidelines by imposing financial covenants. |
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| Environmental and social issues - Category FI |
This is a Financial Intermediary (FI) Type 2 project according to IFC's environmental review procedure. The Bank will be required to undertake an environmental review of each subproject to ensure compliance with host country requirements, IFC environmental and social safeguard policies, and , if applicable, World Bank Group environmental, health and safety guidelines. IFC will assess the Bank's capability to carry out environmental reviews. The Bank must obtain IFC clearance prior to making any investment with IFC funds in any Category A project.
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| To contact the project company, please write to: |
| mzacho@ifc.org |
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