31515 - KBB_SubDebt

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Proposed Investment

Project Number

31515

Company Name

KOMERCIJALNA BANKA

Date SPI Disclosed

Nov 17, 2011

Country

Serbia

Industry

Financial Markets

Projected Board Date

Dec 17, 2011

Status

Completed

Sector

Commercial Banking - General

Department

Global Industry, Financial Markets

Environmental Category

Previous Events

Approved : Dec 19, 2011
Signed : Dec 26, 2011
Invested : Dec 30, 2011

Project Description

Komercijalna Banka ad Beograd (“KBB” or the “Bank” or the “Company”) is the largest locally owned bank in the Serbian banking sector, ranking the 2nd by total assets in the country. Operating since 1971, KBB is a universal bank offering a full range of banking services to its more than 750,000 clients in retail, corporate, SME, and municipal sectors. Headquartered in Belgrade, KBB has developed a strong domestic franchise and expanded to Bosnia & Herzegovina and in Montenegro. The Bank currently employs more than 3,000 staff.

KBB SubDebt (the “Project”) supports an existing client of IFC, a systemic bank in the Serbian banking sector, with long-term financing which is currently unavailable in the market. This partnership will further support private sector development and sustainable economic growth as it would enhance the Bank’s capacity to serve clients.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management	6.60
Guarantee
Loan	75.0
Equity

Development Impact

By providing the Bank with the sub-debt, IFC/AMC will help Komercijalna to strengthen its capital base at a time where Basel II capital requirements are to be adopted in Serbia. This will consequently allow the Bank to further strengthen its position in the market and bolster its financial services and products to Serbian enterprises and individual consumers, supporting economic activity and job protection in the country.

IFC/AMC''s expected additionality in this project is the extension of its role initially played back in 2009 when IFC/AMC along the other IFIs made equity investment in KBB and have been supporting the Bank in various domains. IFC/AMC is expected to play a unique role in not only providing long-term funding which has been scarce in the market during the crisis, but also in augmenting the Bank''s strategy, operations and other areas to further improve the sustainability of business and opportunities for growth which resulted in the proposed IFC/AMC funding.

This project which consists of a sub-debt has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. IFC’s existing investment in Komercijalna Banka consists of an equity investment. Komercijalna Banka has established a Environmental and Social Management System (ESMS) to screen on lending activities against the IFC Exclusion List, applicable environmental and social national laws and regulations, and the IFC Performance Standards for high risk transactions. For this particular project, IFC''s applicable requirements will be to ensure compliance against the IFC Exclusion List, applicable environmental and social national laws and regulations, and the IFC Performance Standards. IFC''s appraisal will focus on Komercijalna Banka progress in implementing the ESMS.

Contacts

For Inquiries About the Project, Contact

Ms. Jelena Djurovic, Strategic Planning Officer
Komercijalna Banka ad Beograd
Svetog Save 14, Belgrade, Republic of Serbia

Telephone: 381-11-308 01 00
Fax: 381-11-344 13 35
Website: HYPERLINK "http://www.kombank.com/" www.kombank.com

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Development Impact

Similar Projects

Contacts

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Expected Development Contribution

Environmental and Social Issues - Category

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer