Belgrade, Serbia, October 14, 2014—IFC,
a member of the World Bank Group, is loaning €15 million to Komercijalna
Banka Beograd to support the bank’s mortgage lending operations and help
expand access to finance for prospective homeowners in Serbia.
Komercijalna Banka Beograd is the largest
locally owned bank in Serbia and the second largest bank on the market,
with a growing market share.
IFC’s relationship with Komercijalna
Banka Beograd began in 2009, with an investment of €40.2 million in convertible
preference shares by the IFC Capitalization Fund. This investment was part
of a €120 million financing package provided by international financial
institutions (EBRD, DEG, and SwedFund).
“This loan further consolidates our
strategic partnership with IFC,” said Mihajlo Kosanović, Director of Financial
Institutions Division of Komercijalna Banka Beograd. “The additional funds
for mortgage lending will enable us to better support the needs of our
clients in one of the most important segments of their relationship with
the bank. This arrangement will further strengthen our competitiveness
and market position, which is already above the local average.”
In December 2011, IFC provided a €50
million loan to Komercijalna to encourage growth. IFC’s corporate governance
program in Europe and Central Asia also worked with the bank to assess
and propose improvements in corporate governance practices and procedures.
“We are working with Komercijalna Banka
Beograd to strengthen the banking system in Serbia and ensure that funds
continue to flow to the businesses and people who need it,” said Thomas
Lubeck, IFC Regional Manager for the Western Balkans. “IFC’s new loan
to Komercijalna Banka Beograd will allow the bank to expand its housing
portfolio and help its clients to become homeowners.”
Serbia became a shareholder and member
of IFC in 2001. Since then, IFC's investment in Serbia has totaled $2.2
billion, including funds mobilized from our partners. IFC is focusing its
investments in Serbia on increasing access to finance by supporting the
development of local financial institutions and financing companies in
the agribusiness and manufacturing sectors. IFC’s advisory services aim
to improve the investment climate and performance of private sector companies
and attract private sector participation in infrastructure projects.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in about 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and tackle
the most urgent challenges of development. For more information, visit
For more information about Komercijalna
Banka ad Beograd, visit www.kombank.com.