- EBRD loans up to €50 million and mobilises a further €20 million from the OPEC Fund
- Joint financing specifically intended for on-lending to MSMEs
- At least 20 per cent of this EBRD financing is dedicated to green projects
The European Bank for Reconstruction and Development (EBRD) is providing up to €50 million to Raiffeisen Bank Albania (RBAL) that will be eligible for RBAL’s minimum requirements for own funds and eligible liabilities (MREL). The Bank is also mobilising an additional €20 million for RBAL in senior preferred financing from the OPEC Fund for International Development (OPEC Fund).
The financing is intended for on-lending to micro, small and medium-sized enterprises (MSMEs), a market segment crucial for the sustainable development of Albania’s economy. At least 20 per cent of the loan will be dedicated to green projects eligible under the EBRD’s Green Economy Transition approach, boosting RBAL’s green lending efforts.
This is the first EBRD-supported, MREL-eligible loan in Albania and the wider Western Balkans region. The EBRD-OPEC Fund joint financing will help RBAL achieve its MREL target as set by the Bank of Albania.
As part of its European Union (EU) accession process, Albania is at the forefront of transposing the EU’s Bank Recovery and Resolution Directive (BRRD) in the region, having been the first country in the Western Balkans to implement a recovery and resolution framework. The EBRD is playing an instrumental role in supporting local authorities in designing and implementing a local resolution regime through ongoing technical assistance to the Bank of Albania.
Aleksandra Vukosavljevic, EBRD Director of Financial Institutions for the Western Balkans and Eastern Europe, said: “We are proud to be among the pioneering MREL providers in a region that has limited access to such funding. Financing under this agreement, together with funding mobilised from the OPEC Fund, will enable Raiffeisen Bank Albania to provide a meaningful increase in financial opportunities for MSMEs, helping them thrive and boost the country’s economy. Moreover, we are confident that this project will serve as a catalyst, paving the way for broader interest in these instruments, including through the involvement of private investors.”
OPEC Fund Assistant Director-General Tareq Alnassar said: “We are pleased to partner with the EBRD and Raiffeisen Bank Albania to improve local MSMEs’ access to finance and, specifically, to support women-led micro and small businesses, food security and green-energy projects. Together we are making a significant contribution to bolstering the strategically important MSME sector, which is the engine of growth and job creation.”
Christian Canacaris, CEO of Raiffeisen Bank Albania, added: “We are glad to be the first bank in the country to sign this agreement and engage in this remarkable partnership. It is a moment of pride for us to extend our partnership with the EBRD and we are happy to initiate our collaboration with the OPEC Fund. Once again, Raiffeisen Bank Albania demonstrates its commitment to easing the financing of MSMEs and specifically to empowering women in business and green financing, by strengthening our financial capacities and compliance with regulatory requirements. We eagerly wait for the positive outcome and impact of this joint agreement.”
RBAL is the third-largest bank in Albania and has been an EBRD client since 2019.
This project aligns fully with the Bank’s current country strategy for Albania, which was adopted in 2020. Specifically, it aligns with two strategic priorities that focus on the private sector and green transition: increasing access to finance and strengthening energy diversification and the low-carbon transition.
This loan is the EBRD’s third funded line over the last few months in support of MSMEs in Albania, after two Youth in Business loans signed in August and October respectively.
The EBRD is the largest institutional investor in Albania, where it has been active since 1991. The Bank has invested €2 billion in more than 140 projects to date.