PBZ LRS ENHANCED SUPPORT FOR MIDCAPS (EIB-20221001)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Croatia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Investment Bank (EIB)
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
Oct 16, 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
Privredna Banka Zagreb d.d.
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)
$ 108.59 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 100
Converted using 2024-10-16 exchange rate.
Loan Amount (USD)
$ 108.59 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 EUR 100 million
Converted using 2024-10-16 exchange rate.
Project Cost (USD)
$ 304.05 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 EUR 280 million
Converted using 2024-10-16 exchange rate.
Primary Source

Original disclosure @ EIB website

Updated in EWS Oct 31, 2024

Disclosed by Bank Sep 24, 2024

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Can you contribute information about this project?
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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 EIB, the project consists of an unfunded risk participation scheme under a full delegation approach by which the EIB will cover up to 50% of the losses with respect to each defaulted loan of a portfolio of loans or other debt instruments to mid-caps in Croatia.

Through the intermediation of PRIVREDNA BANKA ZAGREB DD (PBZ), the new loan portfolio will support the final beneficiaries in their investment efforts as well as in funding their working capital needs.

EIB and PBZ are aiming to further catalyse access to finance for mid-caps and diversify the lending products to Croatian corporates through the experimental issuance of mini-bonds for mid-caps.

The EIB guarantee will enhance lending capacity and risk appetite of the financial intermediary on a semi granular portfolio of mid-cap loans which would benefit from a financial advantage in their risk pricing and cost of lending.

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.

As stated on the company's website, Privredna banka Zagreb d. d. is one of Croatia’s top banks with a long and continuous history of banking operations.

It was established in 1966 and it is the legal successor of Banka NRH, founded in 1962. In all stages of its history, Privredna banka Zagreb has been supporting major investment programs for the development of tourism, agriculture, industry, shipbuilding, electrification and road building, and has become a byword for the economic vitality, continuity and identity of Croatia.
The privatization of Privredna banka Zagreb was successfully brought to an end in December 1999. Having purchased 66.3 percent of the shares of Privredna banka Zagreb, former Banca Commerciale Italiana (BCI) became its majority shareholder, while the Croatian State Agency for Deposit Insurance and Bank Rehabilitation kept a stake of 25 percent plus two shares.
BCI later became part of Gruppo Intesa, the leading banking group in Italy which ranks in the top ten banking groups in Europe. Privredna banka Zagreb has thus become a bank of Gruppo Intesa.

The European Bank for Reconstruction and Development (EBRD) acquired a minority stake in PBZ in 2002. In January 2007, after the merger of Banca Intesa and Sanpaolo IMI, Privredna banka Zagreb became a member of the Intesa Sanpaolo Group.
In June 2015, by acquisition of shares from the EBRD, Intesa Sanpaolo increased its majority stake in the share capital of PBZ to 97.47 percent.

Privredna banka Zagreb still focuses its business strategy on modern forms of banking and new products, living up to its image of a dynamic and modern European bank that responds to the demands of the market and its clients. From its very foundation Privredna banka Zagreb has been one of the leading banks in Croatia. It has received a number of prestigious international and Croatian awards for excellence.


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.

No project contacts provided at the time of disclosure.

Financial Intermediary - Privredna Banka Zagreb d.d.:

Phone: +385 1 489 13 10
Email: pbz365@pbz.hr
Website: https://www.pbz.hr/en/

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.eib.org/en/infocentre/registers/request-form/request-form-default.htm

ACCOUNTABILITY MECHANISM OF EIB

The EIB Complaints Mechanism is designed to facilitate and handle complaints against the EIB by individuals, organizations or corporations affected by EIB activities. When exercising the right to lodge a complaint against the EIB, any member of the public has access to a two-tier procedure, one internal - the Complaints Mechanism Office - and one external - the European Ombudsman. A complaint can be lodged via a written communication addressed to the Secretary General of the EIB, via email to the dedicated email address: complaints@eib.org, by completing the online complaint form available at the following address: http://www.eib.org/complaints/form via fax or delivered directly to the EIB Complaints Mechanism Division, any EIB local representation office or any EIB staff. For further details, check: http://www.eib.org/attachments/strategies/complaints_mechanism_policy_en.pdf

When dissatisfied with a complaint to the EIB Complaints Mechanism, citizens can then turn towards the European Ombudsman. A memorandum of Understanding has been signed between the EIB and the European Ombudsman establishes that citizens (even outside of the EU if the Ombudsman finds their complaint justified) can turn towards the Ombudsman on issues related to 'maladministration' by the EIB. Note that before going to the Ombudsman, an attempt must be made to resolve the case by contacting the EIB. In addition, the complaint must be made within two years of the date when the facts on which your complaint is based became known to you. You can write to the Ombudsman in any of the languages of the European Union. Additional details, including filing requirements and complaint forms, are available at: http://www.ombudsman.europa.eu/atyourservice/interactiveguide.faces

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