Raiffeisen Bank ad Beograd MREL-eligible Bonds (EBRD-55189)

Countries
  • Serbia
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
U
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
Apr 23, 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
RAIFFEISEN BANKA AD BEOGRAD
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)
$ 26.49 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 2900
Converted using 2024-04-23 exchange rate.
Project Cost (USD)
$ 58.46 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 6400
Converted using 2024-04-23 exchange rate.
Bank Documents
Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 10, 2024

Disclosed by Bank Jul 31, 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 project consists of an investment of up to RSD 2.3 bn (equivalent to EUR19.6 mn) in inaugural minimum requirement for own funds and eligible liabilities (MREL)-eligible local currency bonds issued by Raiffeisen Bank ad Beograd (RBB) to be listed on the Belgrade Stock Exchange. The bonds will be contractually eligible against RBB's MREL for bail-in-able funding and have a maturity of 4 years with a non-callable period of 3 years.

The project supports resilience of a local bank by helping RBB build diversified funding base for the minimum requirement for own funds and eligible liabilities and reinforces local capital market development and dinarisation in Serbia by Bank's participation in bonds issued by RBB in local currency. The project contributes to the expansion of lending to private businesses through working capital lines and investment loans to SMEs, including enterprises operating in economically less developed regions of the country. Furthermore, the transaction supports RBB's growth strategy and provides a source of medium term local currency funding. The bank will aim to allocate up to EUR 6 mn of the proceeds to Green Economy Transition (GET) eligible projects.

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.

Categorised FI (2019 ESP). 

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

An investment in inaugural minimum requirement for own funds and eligible liabilities (MREL)-eligible local currency bonds issued by Raiffeisen Bank ad Beograd (RBB) to be listed on the Belgrade Stock Exchange. The bonds will be contractually eligible against RBB's MREL for bail-in-able funding and have a maturity of 4 years with a non-callable period of 3 years. 

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.

RAIFFEISEN BANKA AD BEOGRAD (RBB) is a large universal bank in Serbia providing services to both corporate and  retail market segments. As of 3Q 2023, RBB was the third largest bank in Serbia with total assets of € 5.7bln (11.7 per cent of market share) and net loan portfolio of € 2.9bln (10.9 per cent of market share). The bank has countrywide presence with 132 branches and 2,276 employees. RBB wholly owns Raiffeisen Leasing Serbia and two entities which offer private pension and investment services.


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.

COMPANY CONTACT INFORMATION

Milena Perazic
milena.perazic@raiffeisenbank.rs
+381112207161
+381112207170
https://www.raiffeisen-leasing.rs/
Raiffeisen banka a.d. Djordja Stanojevica 16, 11070 Beograd, Srbija

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