UniCredit Group MR Coverage (UniCredit Bank d.d.) (MIGA-3522)

Countries
  • Bosnia and Herzegovina
Where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 16, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
UniCredit Bank AG/ UniCredit S.p.A.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 198.60 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Feb 24, 2018

Disclosed by Bank Oct 25, 2016


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Project Description

According to MIGA website, on December 29, 2016, MIGA issued a guarantee of $198.6 million covering the equity investments by UniCredit Bank AG’s (UBA) of Austria and UniCredit S.p.A.’s  of Italy for their equity investment in UniCredit Bank d.d. in Bosnia and Herzegovina. The $198.6 million MIGA guarantee will cover the equity investments for a period of up to 10 years against the risk of expropriation of funds. 

It will help UCG obtain relief from the capital adequacy requirements by reducing the risk weighting for the reserves maintained by UCG’s subsidiary in Bosnia and Herzegovina. This will free up equity tied up for country risk purposes and allow UCG’s subsidiary to extend more credit that will stimulate growth, generate employment, and reduce poverty in the country.

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)
Contact Information

No contact information provided at the time of disclosure.

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/