Hypo Alpe-Adria-Bank A.D.
MIGA issued a €22.2 million ($10.6 million) guarantee to Hypo Alpe-Adria-Bank A.G. (HAAB) of Austria for its €24.7 million equity investment in Hypo Alpe-Adria-Bank A.D. (HAAB-SAM) in Serbia and Montenegro. The guarantee is for a period of ten years and provides coverage against the risks of expropriation and war and civil disturbance.
This contract represents an additional guarantee of €9 million over the original contract of guarantee which was issued in fiscal year 2003. It covers an increase in the investment of HAAB in HAAB-SAM to finance the expansion of the bank’s lending capacity. In fiscal 2003, HAAB estimated that it would create thirty-seven local jobs with salaries and benefits slightly above the sector average. However, local job creation more than doubled compared to initial expectations, and the present project is expected to further support HAAB-SAM’s organic growth.
MIGA’s additional guarantee to HAAB-SAM will increase capacity and service to the financial sector of Serbia and Montenegro and the local economy. HAAB-SAM expects to offer approximately sixty percent of its corporate loans to SMEs, and thirty percent to export-oriented companies.