The Summary of Project Information (SPI) submitted by Nova Banka ad Bijeljina to the International Finance Corporation (IFC), whose parent organization is the World Bank, is a school example on how the World Bank acquires participation and frequently majority ownership in the commercial banks in the transition countries. The SPI below specifically descibes the project sponsor Poteza as "an IFC
existing portfolio private equity fund formed by Poteza Nalozbe d.o.o from Slovenia. The
Fund makes equity and equity-related investments in companies based in Southeastern Europe through majoritity or significant minority stakes. Its primary target countries for investment are Bosnia and Herzegovina, Croatia, Serbia, and Slovenia."
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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. Board dates are estimates only.
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Summary of Project
Information (SPI)
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Project
number
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24611
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Project
name
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Nova Banka a.d.
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Country
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Bosnia and Herzegovina
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Sector
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Finance
& Insurance
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Department
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Global
Financial Markets Group
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Company
name
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Nova Banka
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Environmental
category
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FI-1
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Date
SPI disclosed
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November
17, 2005
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Projected
board date
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December
17, 2005
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Status
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Pend
FAP
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Project
sponsor and major shareholders of project company
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The
project sponsor is Poteza Adriatic Fund B.V. (Poteza, or the Fund), an IFC
existing portfolio private equity fund formed by Poteza Nalozbe d.o.o from Slovenia.
The Fund makes equity and equity-related investments in companies based in Southeastern Europe through majority or significant
minority stakes. Its primary target countries for investment are Bosnia and Herzegovina, Croatia, Serbia,
and Slovenia.
In June 2005, Poteza and a co-investor, Prva Pokojninska Druzba d.d., a
pension insurance company based in Slovenia, acquired 50% + 1
share ownership of the Bank. Poteza and its co-investor own 44.1% and 5.9%
respectively of the Bank’s share ownership. Other shareholders include
local individuals and corporations such as Slobodan Radanovic (5.7%),
Invest Nova d.o.o. (3.7%), and Goran Avlijas (3.4%).
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Total
project cost and proposed IFC investment
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The
proposed IFC financing package is for a total amount of EUR 15 million.
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Location
of project and description of site
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Nova
Banka is a licensed commercial bank headquartered in Bijeljina, Bosnia and
Herzegovina, with 11 branches and 58
outlets mainly in RS.
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Description
of company and purpose of project
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The
proposed transaction consists of a financing package of up to EUR 15
million to Nova Banka a.d., Bijeljina (Nova Banka or the Bank or company),
a commercial bank in Bosnia and Herzegovina (BiH), operating predominantly
in the less developed Republic of Srpska (RS). Alongside this financing,
Nova Banka has requested IFC to consider supporting a technical assistance
program involving training and consulting in specific areas to enable
better service delivery to the Bank’s retail and corporate clients.
Profitable and well-positioned, Nova Banka plans to accelerate its growth
with the requested funds and technical assistance through on-lending to
private small- and medium-sized enterprises (SMEs) and to the consumer
retail housing sector. The Bank is facing growing needs from both companies
and consumers for long-term financing. As the economy of BiH is still in
the early stage of transition, the country has much need for the
development of its SMEs and its medium-low income households. Consequently,
the project is expected to have a high developmental impact on BiH.
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Environmental
and social issues - Category FI-1
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This is an environmental and social FI type 1
project. Nova Banka will be required to
establish an environmental management system which is acceptable to IFC in
order to ensure that its operations in lending to clients are in compliance
with host country environmental and social requirements.
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To
contact the project company, please write to:
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Janez
Klobcar
Partner & CEO
Poteza Partners d.o.o.
Zelezna cesta 18
SI - 1000 Ljubljana
Slovenia
Phone: + 386 1 30 70 708
Fax: + 386 1 30 70 887
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The International Finance Corporation (IFC) promotes sustainable private
sector investment in developing countries as a way to reduce poverty and
improve people's lives.
IFC is a member of the
World Bank Group
and is headquartered in
Washington,
DC. It shares the primary
objective of all World Bank Group institutions: to improve the quality of the
lives of people in its developing member countries.
IFC
Mission Statement.
Established in 1956, IFC is the largest multilateral source of loan and equity
financing for private sector projects in the developing world. It promotes
sustainable private sector development primarily by:
- Financing private
sector projects located in the developing world.
- Helping private
companies in the developing world mobilize financing in international
financial markets.
- Providing advice and
technical assistance to businesses and governments.
