Belgrade, Serbia, October 14, 2014
—IFC, a member of the World Bank Group, is loaning €15 million to Komercijalna Banka Beograd to support the bank’s mortgage lending operations and help expand access to finance for prospective homeowners in Serbia.
Komercijalna Banka Beograd is the largest locally owned bank in Serbia and the second largest bank on the market, with a growing market share.
IFC’s relationship with Komercijalna Banka Beograd began in 2009, with an investment of €40.2 million in convertible preference shares by the IFC Capitalization Fund. This investment was part of a €120 million financing package provided by international financial institutions (EBRD, DEG, and SwedFund).
“This loan further consolidates our strategic partnership with IFC,” said Mihajlo Kosanoviæ, Director of Financial Institutions Division of Komercijalna Banka Beograd. “The additional funds for mortgage lending will enable us to better support the needs of our clients in one of the most important segments of their relationship with the bank. This arrangement will further strengthen our competitiveness and market position, which is already above the local average.”
In December 2011, IFC provided a €50 million loan to Komercijalna to encourage growth. IFC’s corporate governance program in Europe and Central Asia also worked with the bank to assess and propose improvements in corporate governance practices and procedures.
“We are working with Komercijalna Banka Beograd to strengthen the banking system in Serbia and ensure that funds continue to flow to the businesses and people who need it,” said Thomas Lubeck, IFC Regional Manager for the Western Balkans. “IFC’s new loan to Komercijalna Banka Beograd will allow the bank to expand its housing portfolio and help its clients to become homeowners.”
Serbia became a shareholder and member of IFC in 2001. Since then, IFC's investment in Serbia has totaled $2.2 billion, including funds mobilized from our partners. IFC is focusing its investments in Serbia on increasing access to finance by supporting the development of local financial institutions and financing companies in the agribusiness and manufacturing sectors. IFC’s advisory services aim to improve the investment climate and performance of private sector companies and attract private sector participation in infrastructure projects.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
.
For more information about Komercijalna Banka ad Beograd, visit
www.kombank.com
.
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