Piraeus Bk Recap (IFC-37865)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Greece
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
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
Dec 25, 2015
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
PIRAEUS BANK S.A.
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 Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 21.93 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 20.00 million
Converted using 2015-12-25 exchange rate.
Campaign Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 31, 2018

Disclosed by Bank Nov 24, 2015

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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.

This project finances an equity investment in Piraeus Bank S.A. to support its recapitalization by participating in a private placement in the form of an Accelerated Bookbuilding, the systematic process of generating, capturing, and recording investor demand for shares during an initial public offering.

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

The project consists of a straight equity investment by IFC of EUR20 million in Piraeus Bank S.A. Founded in 1916, Piraeus Bank is the largest bank in Greece with loan and deposit market shares of approximately 30% and 27%, respectively. With about 20,000 employees operating in 9 countries, with focus on Greece as well as Southern Europe, it provides the full range of financial services to approximately 6 million customers. Greece is the most important market for Piraeus Bank and accounts for close to 92% of the group’s total assets, with the other countries of operations being Romania, Albania, Bulgaria, Serbia, Ukraine and Cyprus. It also has branch presence in London and Frankfurt. As of September 30, 2015, Piraeus Bank had total assets of EUR85.9 billion, total customer deposits of EUR38.1 billion and total net loans of EUR51.9 billion. Its Common Equity Tier I ratio as of the same date was 11.2% (fully loaded 10.2%). Piraeus Bank is listed on the Athens Stock Exchange and prior to the ABB was owned 67% by the Hellenic Financial Stability Fund, 25% by institutional investors and 8% by individuals.

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.

Founded in 1916, Piraeus Bank is the largest bank in Greece with loan and deposit market shares of approximately 30% and 27%, respectively. With about 20,000 employees operating in 9 countries, with focus on Greece as well as Southern Europe, the
Bank provides the full range of financial services to approximately 6 million customers. Greece is the most important market for the Bank and accounts for close to 92% of the group’s total assets, with the other countries of operations being Romania, Albania, Bulgaria, Serbia, Ukraine and Cyprus. The Bank also has branch presence in London and Frankfurt.

As of September 30, 2015, Piraeus Bank had total assets of EUR85.9 billion, total customer deposits of EUR38.1 billion and total net loans of EUR51.9 billion. The Bank’s Common Equity Tier I ratio as of the same date was 11.2% (fully loaded 10.2%).


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 contacts available*

ACCOUNTABILITY MECHANISM OF IFC
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/

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How it works