Cacanska Banka

completed

Cacanska Banka ad Cacak (“CBC” or the “Bank”) has a long tradition in Western Serbia operating since 1956 as a regional bank, covering mainly Central and Western Serbia through a network of 25 organizational units in 21 towns headquartered in Cacak, an industrial center in Western Serbia. The Bank employs 396 people. It is a universal bank offering a full range of banking services to its retail and corporate/SME clients, with SMEs representing over 80% of the Bank’s portfolio. Although CBC is a small bank, it holds a leading position in servicing SMEs in Western Serbia.The Project consists of a potential equity investment of up to 20% of CBC and senior loan facility of up to EUR7 million. It is a joint IFI effort aimed at strengthening the Bank''s capital base, and thereby improving its competitive position and enabling it to bear likely stresses on asset quality in view of the financial crisis. It is also expected to facilitate the eventual sale of the Bank to a strategic investor once normalcy returns. IFC will provide five year Senior Loan with a purpose of on lending to small and medium size enterprises, subject to the capital investment.