96.7% of the Bank is currently owned by Raiffeisen Zentralbank Austria (“RZB”) through its holding subsidiary Raiffeisen International Bank-Holding (“RI”). RZB was created in 1898 as the central bank to Austria’s Raiffeisen banks (rural credit co-operatives), but it also acts as a commercial bank and in some countries as an investment bank. With assets of close to EUR63 billion and 25% of market share in Austrian retail deposits, it is currently Austria’s 3rd largest banking group (after Erste Bank and Bank of Austria/ Credit Anstalt). RZB is 87% owned by nine regional Raiffeisen Banks. These regional banks are owned by 586 local Raiffesen Banks, which in turn are owned by 1.7 million co-operative members or clients. Currently, RZB owns and operates 15 Network Banks (“NWBs”) in Central and Eastern Europe. RZB is A1 rated by Moody’s.

The proposed IFC investment consists of a long term loan for up to EUR12 million for its own account.

16.33 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	16.33
Equity

* These investment figures are indicative

RBBH is headquartered in Sarajevo.

Development Impact: The project is expected to have a significant development impact in Bosnia and Herzegovina in the following ways: - Supporting the nascent housing market: IFC funding will boost the Bank's capacity to provide term loans to the housing sector and will thus support the development of this sector in BiH. - Improving financial infrastructure/strengthening of a financial institution: In the proposed transaction, IFC will play an important role in reconfirming RBBH’s dominant position in the market by providing it with a long-term loan and strengthening its competitive advantage in the Bosnian banking sector. - Extending finance to underserved individual borrowers: By directing the proceeds of the IFC Loan to individual borrowers, the project will meet the growing demand for housing finance in BiH. IFC Role: IFC role in this project is summarized below: - Accessing long term financing: The project will help a local intermediary to develop and strengthen its lending operations. Currently RBBH would be unable to obtain a loan of comparable tenor from the market. IFC’s provision of such long-term credit line will further stabilize, diversify and extend the maturity of the Bank’s funding base, which would allow RBBH to extend the tenor of the housing loans, an area of much needed attention in BiH. - Demonstration effect: By continuing to support RBBH, IFC will signal its strong support for BiH’s private banking sector.

This is an FI Type 2 project to IFC’s environmental and social review procedure. As part of a previous investment by IFC and EBRD, RBBH established an environmental management system (EMS) that covers relevant operations. For the proposed new investment by IFC, RBBH will be required to confirm that it will maintain its EMS for the duration of the new investment to ensure that its relevant operations meet BiH and applicable IFC environmental and social requirements.
Location of environmental documents in locally affected community