FIF - PRS - OTP Bank SA (EFSD+2)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Portfolio Risk Sharing ("PRS") in the form of an unfunded portfolio guarantee of up to EUR 15.0 million provided by the Bank in favour of OTP Bank Moldova ("OTPM"). The guarantee will cover up to 50% of the credit risk on a pro rata basis on the newly-generated micro, small and medium-sized entreprise ("MSME") loan portfolio of up to EUR 30.0 million originated by OTPM.

Project ID 55029

Status Signed

Location

Moldova

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Svetlana Armasu
Svetlana.Armasu@otpbank.md
https://www.otpbank.md/

Project ID 55029

Status Signed

Location

Moldova

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

03 Sep 2024

Disclosure date

04 Sep 2024

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

FIF - PRS - OTP Bank SA (EFSD+2) (Romanian) (PDF, 0.00MB)

Project description

Project objectives

This project is the first pilot implementation of the Portfolio Risk Sharing product by the EBRD in Moldova. The product aims to release a bank's risk-taking capacity to boost on-lending to MSMEs, addressing an MSME financing gap in the market.

Transition impact

ETI Score:60

nsition impact of the project derives from Competitive and Resilient transition qualities. The facility will enable OTPM to further expand lending operations to the MSME sector in Moldova and derisk OTPM's MSME lending operations.

Client information

OTP BANK SA

OTP Bank Moldova is 98.23% owned subsidiary of OTP Bank Nyrt, Hungary and ranked 3rd largest by gross loans (10.82% market share) and 4th by total assets (12.67%) in Moldova at 1H2024. It is a universal bank active in retail banking, MSME and corporate lending with 54 bank offices and 154 ATMs in Moldova. OTP Bank Nyrt is one of the leading banking institutions in the CEE/CIS region (rated BBB- by S&P and Baa1 by Moody's).

EBRD Finance Summary

EUR 15,000,000.00

Total project cost

EUR 30,000,000.00

Additionality

Innovative financing structures. EBRD offers an innovative financing structure on commercial terms not available from other banks. The project will support the development of a new risk sharing instrument on a portfolio basis of newly originated MSME loans.

Knowledge, innovation, and capacity building. EBRD provides expertise, innovation, knowledge and capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client for future structured finance projects.

Environmental & Social Summary

Categorised FI (ESP 2019). OTPM is an existing client and already has developed an Environmental Social Monitoring System ("ESMS") which covers its environmental and social risk management policies in-line with PR9. OTPM will be required to comply with EBRD's PRs 2, 4 and 9, implementing the EBRD's E&S Risk Management Procedure for Micro, SME and Corporate lending; adhere to the updated EBRD's Environmental and Social Exclusion List as well as Referral List introduced with ESP 2019 and submit Annual E&S Reports to the Bank. OTPM's borrowers will be required to comply with applicable national environmental, health and safety and labour requirements.

Technical Cooperation and Grant Financing

TC: The project is indirectly supported by SSF funds, which are being used for the overall PRS product development, in particular the legal support by an outside counsel and previous support in the design of the product. The project is also supported by tailored capacity-building for MSMEs, especially for agri MSMEs to strengthen their agribusiness practices and capabilities in the export market via the Advice for Small Businesses ("ASB") team.

Non-TC: The project will benefit from the First Loss Risk Cover provided by the European Fund for Sustainable Development (EFSD) Plus Programme.

Company Contact Information

Svetlana Armasu
Svetlana.Armasu@otpbank.md
https://www.otpbank.md/

PSD last updated

04 Sep 2024

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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FIF - PRS - OTP Bank SA (EFSD+2)

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)