FIF - Raiffeisen Bank BiH (Bail-in Senior Loan)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a senior unsecured loan of up to €12.5 million to be provided in one single tranche to Raiffeisen Bank d.d. Bosnia and Herzegovina (the "Bank"). The EBRD loan is expected to mobilise additional senior unsecured funding from an international investor.

Project ID 55264

Status Disbursing

Location

Bosnia and Herzegovina

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

Emira Cehajic
emira.cehajic@raiffeisengroup.ba
+387 33 287 764
https://www.raiffeisenbank.ba
Zmaja od Bosne bb 71000 Sarajevo Bosnia and Herzegovina

Project ID 55264

Status Disbursing

Location

Bosnia and Herzegovina

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

30 Apr 2024

Disclosure date

15 May 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 - Raiffeisen Bank BiH (Bail-in Senior Loan) (Bosnian) (PDF, 0.15MB)

Project description

Project objectives

The proposed transaction aims to support the resilience and regulatory compliance of the Bank. The loan will also facilitate the Bank's expansion of lending to private small and medium-sized enterprises ("SMEs"), including businesses operating in less economically developed regions of the country. The bank will aim to allocate 20 per cent of the proceeds to GET-eligible projects.

Transition impact

ETI Score:60

ject supports the Resilient and Competitive transition qualities.

The operation will support the Resilient transition quality by helping the Bank in meeting its respective regulatory requirements towards loss absorbing funding base and also support the bank's resilience to market and regulatory shocks, thereby increasing its long-term sustainability. The transaction will contribute to the Competitive quality by increasing availability of financing to SMEs in BiH.

Client information

RAIFFEISEN BANK DD BOSNIA AND HERZEGOVINA

Raiffeisen Bank is an existing EBRD client since 1997. It is is a universal bank, headquartered in Sarajevo, operating through 90 branches in BiH with 1,341 employees. The Bank is ranked second in BiH in terms of total assets (13.6% market share), loan portfolio (12.2% market share) and deposits (13.6% market share) at YE 2022.

EBRD Finance Summary

EUR 12,500,000.00

Total project cost

EUR 25,000,000.00

Additionality

Financing Structure: EBRD financing effectively bridges a financing gap due to adverse market conditions by offering terms and conditions, and volume not available on the market.

Innovative financing structures and/or instruments: The EBRD offers an innovative financing structure in form of MREL-eligible loan (one of the first three such issuances in BiH), on commercial terms not available from other banks.

Resource mobilisation: The EBRD project mobilises additional commercial funding through a parallel financing structure.

Environmental & Social Summary

Categorised FI (ESP 2019). The Bank is an existing client and its performance to date for existing exposures has been satisfactory. It will be required to continue to comply with PRs 2, 4 and 9, and implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit annual E&S reports to the Bank. Sub-borrowers financed through RBBH's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.

If the use of proceeds may include solar sub-projects, such sub-projects will be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/21-35), (CS/FO/21-35 (Add 2)) and any subsequent guidance developed under that approach.

Technical Cooperation and Grant Financing

n/a

Company Contact Information

Emira Cehajic
emira.cehajic@raiffeisengroup.ba
+387 33 287 764
https://www.raiffeisenbank.ba
Zmaja od Bosne bb 71000 Sarajevo Bosnia and Herzegovina

PSD last updated

15 May 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.

Our story

How we invest in changing lives

What we offer for businesses

Search

FIF - Raiffeisen Bank BiH (Bail-in Senior Loan)

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)