IFC in Serbia Per Kjellerhaug, IFC

Regional Manager, Western Balkans

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IFC Overview

The World Bank Group

IBRD

International Bank

for Reconstruction

and Development

IDA

International

Development

Association

IFC

International Finance

Corporation

MIGA

Multilateral

Investment and

Guarantee Agency

Est. 1945 Est. 1960 Est. 1956 Est. 1998

Role To promote

institutional, legal and

regulatory reform

To promote

institutional, legal and

regulatory reform

To promote private

sector development

To reduce political

investment risk

Clients Governments of member

countries with per

capita income between

$1,025 and $6,055

Governments of poorest

countries with per

capita income of less

than $1,025

Private companies in

member countries

Foreign investors in

member countries

Products • Technical Assistance

• Loans

• Policy Advice

• Technical Assistance

• Interest Free Loans

• Policy Advice

• Equity/Loans

• Risk Management

• Advisory Services

• Political Risk

Insurance

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IFC’s Three Businesses

IFC Investment

Services

IFC Advisory

Services

IFC Asset

Management

Company

• Loans

• Equity

• Other forms of

financing

• Access to Finance

•Investment Climate

•PPPs

•Sustainable Business

•E&S Guidance

• Wholly-owned

subsidiary of IFC

• Private equity fund

manager

• Invests third-party

capital alongside

IFC

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5

IFC’s Global Reach

100+ country and regional offices worldwide

Dakar

Nairobi

Johannesburg

Cairo

Washington

Mexico City

Bogota

Buenos Aires

São Paulo

Port-of-Spain

Moscow

IFC HQ/Hub Offices

IFC Operational Centers

IFC Country Offices

Hong Kong

New Delhi

Almaty

Istanbul

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IFC in Serbia

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IFC in Serbia

• Serbia became a shareholder and member of IFC in 2001.

• As of 31 July 2012, IFC's portfolio in Serbia stands at $664 million.

• Last financial year FY12 (July 2011 – June 2012), IFC invested US$351.2

million and mobilized US$152.8 million in Serbia, supporting projects in

the financial sector, agribusiness, and manufacturing sectors.

• In Serbia, IFC works with private sector clients, government, and civil

society to bring the benefit of global expertise to the country through its

advisory services and investment projects.

• Our priorities in Serbia include: crisis response, agribusiness, climate

change and improvements in investment climate.

•

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IFC Advisory Services in Serbia

Infrastructure

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2.2 billion

• IFC provides advice on designing and implementing

public-private partnership (PPP) transactions to

national and municipal governments to improve

infrastructure and access to basic services such as

water, power, health and education. The program is

supported by our donor partners: Austria, Norway and

Switzerland.

• The Balkans Renewable Energy Project works to

develop the small hydro power plants (SHPP) market in

the Western Balkans countries. Supported by the

Ministry of Finance of Austria.

* Sept 2011

Corporate Governance and Investment Climate

Projects

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2.2 billion

• IFC’s Corporate Governance Program in Serbia is aimed at improving

corporate governance practices in companies and financial institutions, as

well as enhancing the corporate governance framework at the

institutional, regulatory and policy levels.

• The Southeast Europe Tax Transparency and Simplification Program

works to simplify tax administration procedures to reduce tax compliance

costs, particularly for SMEs; and improve the legal framework and

efficiency of administration of international taxation procedures, with a

focus on transfer pricing and double taxation treaties. Supported by the

Swiss State Secretariat for Economic Affairs (SECO).

• The Western Balkans Trade Logistics Project works to Reduce the

number of documents and days needed for goods to be exported and

imported; and streamline procedures for the flow of cargo by road, air,

and river.

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IFC Investment Services in

Serbia

IFC Commitment Trends and Portfolio in Serbia

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Recent Agribusiness Projects

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2.2 billion

• IFC provided a loan of up to €12.5 million to Serbia’s

beverage maker Vino Zupa to support development of

agribusiness in the country.

• IFC lent €45 million to MK Group, a Serbian food

producer, to modernize and expand production.

* Sept 2011

Recent Financial Markets Projects

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2.2 billion

• €70 million loan to the Serbian unit of Societe Generale SA to finance

agricultural development.

• IFC extended a €50 million loan to UniCredit equally divided between

housing line (focus on low income households) and agribusiness line

supporting one of Serbia’s key sectors.

• Banca Intesa a.d. Beograd: US$12.1 million (EUR 9.1 million)

participation in rights issue.

• Cacanska Banka: US$7.2 million loan aimed at the SME lending in frontier

regions (following $9.1 million equity investment in FY11).

• Komercijalna Banka a.d. Beograd: US$75 million sub-debt for

strengthening capital base (following US$65.2 million preferred share

investment (through AMC) to help capitalize the largest state owned bank

and extend support to the SME sector).

Recent General Manufacturing Projects

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2.2 billion

• IFC invested €50 million for a minority stake in Titan Cement Cyprus,

owned by Greek cement manufacturer Titan Cement. The investment will

support Titan’s subsidiaries in the Western Balkans: Cemertara Kosjeric in

Serbia, Cementarnica USJE in the FYR Macedonia, and SharrCem in

Kosovo.

• IFC extended €20 million to PMC Automotive Serbia, a joint venture

between Italian automotive suppliers CLN Group and PROMA Group. The

venture is a Greenfield metal stamping facility in the designated supplier

park, aimed at supporting the automotive supply chain for the production

of the new sub-compact vehicle in the FIAT plant in Kragujevac.

• Kronospan: US$30 million subordinated loan to help the sponsor complete

a US$120 million investment in a new particle board production plant;

IFC Strategy for the FY12-15 Period

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2.2 billion

• IFC expects to increase financing to the private sector to US$600-

800 million during the CPS FY12-15 period, or more than 50% as

compared to FY08-11 period.

• The program will depend on the government’s support for the

private sector participation in the infrastructure sectors at

national and municipality level, further improvements of the

business environment, and the growth outlook in Europe.

• IFC will continue to concentrate of crisis response initiatives,

agribusiness, financial markets and infrastructure with a particular

emphasis on the renewable energy projects.

Contact

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Per Kjellerhaug, IFC

Regional Manager, Western Balkans

Bulevar Kralja Aleksandra 86

11000 Belgrade

Tel: +381 11 3023 750

Email: Pkjellerhaug@ifc.org