Search
Search
- First time EBRD has issued subordinated loan in local currency in Western Balkans
- Loan will boost green investment and improve access to finance for women- and youth-led MSMEs
- Innovative project will bring best international practice in regulatory capital funding to Serbia and support MSMEs’ succession planning
The European Bank for Reconstruction and Development (EBRD) is providing a subordinated debt facility to ProCredit Bank Serbia (PCBS) in a landmark transaction that will strengthen the bank’s capital base and contribute to the long-term resilience of Serbia’s banking sector. This is the first time that the EBRD has issued a subordinated loan in local currency in the Western Balkans.
The €12 million equivalent loan in Serbian dinars will help PCBS to maintain compliance with capital requirements – including minimum requirements for own funds and eligible liabilities (MREL), a critical component of regulatory stability. Structured with embedded call and early prepayment options, the loan will bring international regulatory capital funding to Serbia – an innovation in the local financial market.
This transaction is strategically aligned with the EBRD’s commitment to sustainability and inclusive finance. All of the proceeds of the loan will be used to either finance investments that are consistent with the EBRD’s Green Economy Transition (GET) approach or support micro, small and medium-sized enterprises (MSMEs) that are owned or led by women or young individuals – two groups of MSMEs that find it particularly difficult to access finance in Serbia.
Delivered in local currency, this EBRD financing highlights the Bank’s capacity to offer tailored, risk-hedged solutions that match clients’ operational environment and needs.
In addition to financial support, the EBRD is also working with PCBS to roll out a training academy focused on succession planning for MSMEs, ensuring long-term business continuity and resilience within Serbia’s entrepreneurial ecosystem.
Aleksandra Vukosavljević, the EBRD’s Director of Financial Institutions for the Western Balkans and Eastern Europe, said: “This milestone transaction reflects the EBRD’s deepening role in supporting the Serbian banking sector. It delivers on multiple strategic priorities – from strengthening capital resilience and promoting local currency lending to improving access to sustainable finance for underserved businesses. We are proud to continue our partnership with PCBS and support its innovative and inclusive agenda.”
Igor Anić, Chairman of the Executive Board of PCBS, said: “Together, we are making great strides towards development, sustainability and inclusive financing. Our longstanding and highly successful partnership with the EBRD has now been taken to an even higher level, with the first subordinated loan in local currency in our region. This is a very important partnership for ProCredit Bank, as these funds will finance development and green economy projects, which are now of increasing importance, as well as supporting MSMEs owned or led by women and young people, which are the two most vulnerable groups when it comes to access to financing.”
PCBS is a longstanding partner of the EBRD, working to foster green investment, support financial inclusion and promote sustainable development in the Western Balkans.
To date, the EBRD has invested more than €10 billion in Serbia through 382 projects.