EBRD becomes minority shareholder of Komercijalna Banka

Serbian Minister of Finance Mladjan Dinkic, Head of the Financial Institutions Group and Equity at the European Bank for Reconstruction and Development (EBRD) Kurt Geiger and Komercijalna Banka’s president and vice-president Ivica Smolic and Predrag Mihajlovic signed today a recapitalisation agreement for 25% of Komercijalna Banka’s assets, which made EBRD Komercijalna’s minority shareholder.

The EBRD took over 25% of Komercijalna Banka’s assets for €70 million, which is 2.9 times up from its book value, Dinkic said. In a press conference, Minister Dinkic said that Komercijalna Banka, with its 300 branch offices in Serbia, has the largest bank network in the country.

According to Dinkic, the state remains Komercijalna’s majority owner with 51% of shares. The state will not sell its share in this bank in the next three years, Dinkic said adding that together with EBRD, the state will make conditions for the sale of minority packages of shares on the stock exchange so as to increase the number of bank’s small shareholders.

EBRD’s 15-year loan to Komercijalna Banka in the amount of €30 million for crediting housing loans in Serbia is being prepared, Dinkic said and added that Komercijalna will seek allowance to enter the market of Bosnia-Herzegovina next month.

Geiger confirmed that this bank is also ready to recapitalise insurance firm Dunav Osiguranje, which has also attracted interest of the International Financial Corporation.

After the recapitalisation, Komercijalna Banka is the largest bank in Serbia and its capital has grown to €170 million. This bank is also the leader in Serbia by the amount of citizens’ foreign currency savings deposits, among the leading banks by participation in domestic and international payment transactions and third by the size of assets.