Incofin Investment Management is pleased to announce that the Incofin Microfinance Fund (IMF) has completed a successful exit from Lovćen Banka AD, a commercial bank based in Podgorica, Montenegro.
IMF first invested in Lovćen Banka in November 2020, initially through the conversion of a loan into equity, and subsequently participated in two capital increases to support the bank’s continued development. Over the course of the investment, Lovćen Banka strengthened its capital base and deepened its presence in Montenegro’s financial sector.
Upon entry into the bank’s equity, our main concern was to restore the portfolio quality, which was under severe pressure due to the COVID-19 crisis. We are happy to leave the bank with a very strong portfolio of high-quality loans. Incofin also supported the bank’s digitalisation strategy and contributed with technical assistance to the development of internet and mobile banking services.
Jan DewijngaertPrivate Equity Director, Eastern Europe and Central Asia, Incofin
The exit was completed alongside co-investors DEG, the German development finance institution, and a local investor group. IMF’s stake was acquired by Zetagradnja DOO, a prominent Montenegrin real estate development company and existing shareholder, who will now hold the majority of the bank alongside SIDT, a member of Germany’s Sparkassen Group.
With this reinforced shareholder structure, Lovćen Banka is well positioned to enter a new phase of growth – combining strong local ownership with the international banking expertise of the Sparkassen Group.
Incofin Microfinance Fund is managed by Incofin Investment Management.