AIK MREL (IFC-49983)

Countries
  • Serbia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 30, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
AIK BANKA AD
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 81.22 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 75
Converted using 2024-10-17 exchange rate.
Project Cost (USD)
$ 81.22 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 75
Converted using 2024-10-17 exchange rate.
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 19, 2024

Disclosed by Bank Oct 17, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed investment consists of an up to EUR75 million or its equivalent in Serbian Dinar (RSD) for IFC’s own account to AIK Banka a.d. in Serbia in Minimum Requirement for Own Funds and Eligible Liabilities (MREL) eligible senior instruments, to be issued in loan or bond format over the next 24 months, for tenors up to four years. The proceeds from IFC’s investment are to be entirely deployed for climate finance of corporates and Medium, Small and Micro Enterprises (MSMEs) in Serbia.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The activities supported under the project are expected to have medium to high E&S risks and include a limited number of business activities that may have potentially high E&S risks or impacts and might be addressed through mitigation measures. Therefore, this project has been categorized as FI-2 in accordance with IFC's Sustainability Policy. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed investment comprises MREL investments in AIK Banka a.d. Belgrade of up to EUR 75 million or its RSD equivalent, for IFC’s own account.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

AIK Bank is a universal commercial bank domiciled in Serbia with a market share of around 7%. Incorporated in its current form in 1993 and headquartered in Belgrade, the Bank is the 6th largest on the market, operating across the entire country through a network of 61 branches. In November 2023, AIK Bank acquired “Eurobank Direktna A.D.” (Serbia), the full merger is expected to be completed in 2025.  

The ultimate shareholder of the Bank is Mr. Miodrag Kostic (the “Sponsor”), who owns the “MK Group”, a holding with multiple businesses in agriculture, logistics, tourism and banking. Mr. Kostic owns the Bank through legal entities registered in Serbia, Switzerland, Cyprus and Netherlands. The immediate shareholder entity of the Bank is “M&V Investments”, a brokerage company domiciled in the Republic of Serbia.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIK Banka a.d. Belgrade
Andrija Vukovic
CFO
+381 11 2028 837
Andrija.Vukovic@aikbanka.rs
Bulevar Arsenija Carnojevica 59A, lamela D, Beograd
www.aikbanka.rs

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/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

How it works

How it works