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Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
Raiffeisen Leasing d.o.o. Sarajevo
Project ID
Fiscal year
Guarantee holder
Raiffeisen Zentralbank Österreich AG
Investor country
Host country
Bosnia and Herzegovina
Environmental category
Date SPG disclosed
April 11, 2008
Project Board date
June 12, 2008
Gross exposure
 $47.7 million
Project type

View Summary of Proposed Guarantee

MIGA has issued guarantees of €33.25 to Raiffeisen Zentralbank Österreich AG (RZB) in Austria covering their €35 million shareholder loans to their subsidiary Raiffeisen Leasing d.o.o. Sarajevo (RLBH) in Bosnia and Herzegovina. The loans will fund the RLBH’s leasing portfolio. MIGA’s coverage is for a period of up to six years against the risks of transfer restriction and expropriation of funds.

RLBH leases vehicles, including cars, trucks and trailers, various types of equipment, including processing, packaging and construction equipment, as well as leasing of industrial and office buildings. Loan proceeds are expected to be used to finance vehicle leases to micro and small-size enterprises and car leases to individuals.

This project is expected to contribute to the development of the financial sector in Bosnia and Herzegovina by improving access to finance, particularly to segments of the economy that are currently underserved.

The shareholder loans support RLBH’s ongoing leasing business, thereby contributing toward the continued development and strengthening of the country’s leasing sector. The leasing sector in Bosnia and Herzegovina is still relatively small compared to West European countries. Small and medium-size enterprises (SMEs) are especially expected to benefit from the development of leasing in the country, as they often do not qualify for bank financing and lack the capital to purchase fixed assets to grow their businesses. SMEs and corporates account for more than 90 percent of RLBH’s leasing volume. 

MIGA’s support for this investment is aligned with the World Bank Group’s country assistance strategy in Bosnia and Herzegovina for 2008-2011 and the country’s development objectives, particularly with regard to improving the environment for private sector-led growth and convergence with Europe.

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