This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
Provision of a senior unsecured loan to Intesa Sanpaolo Bank d.d. Bosnia i Herzegovina (the "company" or "ISP BiH") of up to EUR 10.0m under the Regional SME Competitiveness Support Programme ("CSP") in two equal tranches. The loan will be fully guaranteed by Intesa Sanpaolo SpA (Italy).
The project will support investments in SMEs to upgrade production facilities and comply with EU Directives in the field of environmental protection, workers' and product safety and product quality. The investments will be selected based on the technical and financial eligibility criteria set forth in the Policy Statement for the Regional SME Competitiveness Support Programme. Support to SMEs is tailored as a combination of access to finance with TC and non-TC assistance. At least 60% of the use of proceeds will go towards financing GET-eligible investments in line with the Policy Statement.
ETI score: 60
The project contributes to the objectives of the Regional SME-CSP, supporting the Competitive and Resilient transition qualities.
Competitive: The project will contribute towards: (i) supporting SMEs in accessing finance towards EU standards investments; and (ii) assisting SMEs to access advice and know-how for introducing and implementing EU standards and becoming competitive.
Resilient: Sub-borrowers will be expected to be commercially viable, which will be reflected in the expected strong underwriting expertise and adequate portfolio quality of the PFIs.
INTESA SANPAOLO BANKA DD BOSNIA AND HERZEGOVINA
ISP BiH is the 3rd largest bank in Bosnia and Herzegovina with assets of EUR 1,193.5m and a market share of 7.2% by total assets, 8.0% by customer loans and 7.0% by customer deposits as of YE 2019. The company is headquartered in Sarajevo and services the entire territory of BiH through electronic channels and a network of 48 branches. At YE 2019, the bank had 556 employees.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing in the form of a senior loan with technical support and targeted investment incentives into a package that promotes investments that will improve the competitiveness of local SMEs.
Environmental and Social Summary
Categorised FI (ESP 2019). ISP BiH is an existing client and its performance to date for existing exposures has been satisfactory. ISP BiH will be required to continue to comply with PRs 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the expanded 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 ISP BIH's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation and Grant Financing
TC: will include support for Programme Consultants that will assist with the implementation, marketing and monitoring of the Programme and a separate verification of the technical implementation of the investments by the Sub-borrowers before the incentive payment is released.
Co-investment grants: EUR 1.5 million for investment incentives to Sub-borrowers for the implementation of eligible investments in line with the CSP Policy Statement.
Company Contact Information
+387 33 49 77 11
+387 33 49 78 18
Obala Kulina bana 9a 71000 Sarajevo Bosna i Hercegovina
PSD last updated
04 Dec 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. 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 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; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.