ProCredit Bank equity (EBRD-54191)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Germany
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
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
Mar 10, 2023
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
ProCredit Holding AG & Co. KGaA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
Not Disclosed
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.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Mar 24, 2023

Disclosed by Bank Mar 17, 2023

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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.

The project concerns a follow-on equity investment in which EBRD will acquire an additional 5 per cent stake in ProCredit Holding AG & Co. KGaA. Added to the initial 3.6 per cent subscription made in 2018, this will bring the EBRD's stake to 8.7 per cent. As part of the transaction, the EBRD will also acquire a 9.9 per cent stake in the management company, ProCredit General Partner AG. The EBRD will become a core shareholder of the ProCredit Group alongside Zeitinger Invest, KfW, Doen Participaties and ProCredit Staff Invest. The stakes in each entity will be acquired in a private bilateral transaction from the International Finance Corporation. The completion of transaction is subject to regulatory approvals where applicable.

The investment will support ProCredit Holding in its transformation to an open joint stock company while preserving its impact orientation, as announced by ProCredit Holding in October 2022. Furthermore, the EBRD will support the Group's business strategy, governance, and collaborate with ProCredit on furthering its climate mitigation practices and aligning its business and financial flows with the goals of the Paris Agreement.

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

From the EBRD's website:

ProCredit Holding AG & Co. KGaA is partnership limited by shares incorporated in Germany. It is a development-oriented banking group focusing on financing SMEs, with diversified operations via 12 banking subsidiaries with a focus on Central and Eastern Europe. ProCredit Holding is listed on Frankfurt Stock Exchange since December 2016 and it is a long-standing client of EBRD.


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.

Client - ProCredit Holding AG & Co. KGaA:

Investor Relations Team
Email: PCH.ir@procredit-group.com
Phone: +49 69 951 437 300
Website: www.procredit-holding.com
Address: ProCredit Holding AG & Co. KGaA, Rohmerplatz 33-37, 60486 Frankfurt am Main, Federal Republic of Germany

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works