UniCredit Srbija is 100% owned by UniCredit Bank Austria AG member of the UniCredit Group one of the Europe’s leading financial groups present in 22 European markets operating 9,617 branches and employing over 160,000 people.

The total project cost is estimated at EUR 55 million to be solely provided by IFC.

71.22 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	71.22
Equity

* These investment figures are indicative

The Bank is headquartered in Belgrade and has 70 branches across Serbia. Investments can be made throughout the country.

The project is expected to have a high developmental impact by: (i) supporting bank operations within agribusiness industry, an underserved segment of Serbian economy, by providing term finance for agri producers. Agribusiness is one of the few sectors in Serbia where country has current account surplus and where Serbia can develop a sustainable long term competitive position (ii) access to finance to lower income population by providing long term housing finance that is currently not available in the market, and (iii) IFC investment will help banking sector sustain its recently built trust, significantly affected by the global economic crisis.     

(i) provide financing that is currently not available from other market sources but only from IFIs and (ii) supports access to critically needed term finance for companies operating within agribusiness sector and to the lower income population.

This project, which consists of a senior loan to UniCredit Serbia for on lending to agribusiness sectors and mortgage operations, has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. IFC''s existing investment in UniCredit Serbia consists of a senior loan which is intended to enable the Bank to expand its loan portfolio, particularly long-term lending to SMEs, mortgage operations, and lending relating to commercial and residential real estate development. The bank applies the UniCredit Group policy to screen the loans against the IFC Exclusion List, and applicable environmental and social national laws and regulations. UniCredit Serbia''s overall E&S performance is regarded as ''average''.

For this particular project, IFC''s applicable requirements will be to ensure that loans to agribusiness sectors and mortgage operations are screened against the IFC Exclusion List, applicable environmental and social national laws and regulations, and the IFC Performance Standards, if necessary. IFC''s appraisal will focus on local adaptation and implementation of the existing UniCredit Group Policy at the bank level by developing written guidelines and procedures. This will include a) screening against IFC Performance Standards, if necessary, and agribusiness related E&S risks, and b) an exclusion list that fully incorporates IFC''s Exclusion List.