EBRD buys 5 per cent of AikGroup for up to €64 million, with a board seat

The European Bank for Reconstruction and Development is investing up to €64 million in AikGroup, the Cyprus-headquartered owner of lenders in Serbia, Slovenia and Montenegro, for a 5 per cent stake and a board seat, the bank said on 8 October.

The EBRD is buying newly issued shares and will appoint a nominee director to AikGroup's board. The bank did not publish a valuation. At the top of the range, however, the two figures in its release imply a value of about €1.28 billion for the whole group after the new money is added, since €64 million buys 5 per cent of the enlarged share capital.

A group built by acquisition

AikGroup is supervised by the European Central Bank and owns Aik Banka in Serbia, Gorenjska Banka in Slovenia and Hipotekarna Banka in Montenegro, the EBRD said. The bank describes it as one of the fastest-growing banking groups in south-eastern Europe and says it has grown through a series of acquisitions to more than €10 billion of total assets.

The group's medium-term ambition is to reach €20 billion of total assets within three to five years, supported by further acquisitions and organic growth, the EBRD said. That would mean doubling the balance sheet. The EBRD said its capital would support AikGroup's strategy of expanding across the Adriatic region "through acquisitions and organic growth". The release does not name any target or say how much of the planned growth would come from deals.

Part of the money is also tied to technology. AikGroup plans new digital services across its subsidiaries, including upgraded mobile banking applications and online lending platforms with automated loan approvals, the release says.

What the EBRD asks for in return

The governance terms are set out in some detail. The nominee director, the EBRD said, "will provide additional independent and international experience to support the group's further growth and international expansion." The bank also said the board seat would reinforce corporate governance and support strategic decision-making as the group expands abroad.

AikGroup will receive technical cooperation support to strengthen cybersecurity and data governance across the group in line with the EU Digital Operational Resilience Act. The group has also committed to developing and implementing a climate transition plan aligned with the goals of the Paris Agreement, covering governance, strategy, risk management and disclosure across the group and its subsidiaries, according to the EBRD.

Francis Malige, the EBRD's managing director for financial institutions, said in the statement: "Strong, transparent regional banking groups play an important role in advancing good governance in their respective banking sectors, as well as supporting private-sector growth and economic integration."

Razvan Munteanu, AikGroup's chief executive, said in the same release: "Having EBRD as a strategic partner is a strong endorsement of our strategy and our ambition to build a leading financial group in the Adria region, creating lasting value in the markets in which we operate."

What is not in the release

The EBRD did not say who AikGroup's other shareholders are, when the share issue is expected to complete, or whether any regulatory approvals remain outstanding. It also did not say why the commitment is expressed as up to €64 million rather than a fixed sum, or whether the final stake could differ from 5 per cent.

Because the EBRD is buying newly issued shares, the money goes to AikGroup rather than to existing shareholders. The package pairs that capital with a board seat and written commitments on cyber resilience and climate planning. The EBRD said the transaction is consistent with its financial sector strategy and its approach to accelerating the digital transition, and that it supports a competitive, well-governed banking sector across the Western Balkans and the wider Adriatic region.