Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

15 Sep 2020



PSD disclosed:

22 Dec 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The proposed transaction under the NPL Resolution Framework (the "Framework") is for EBRD to subscribe to newly issued shares of AxFina Holding SA.

Project Objectives

Through the proposed transaction, the Bank will support a promising NPL servicer in (i) furthering growth and consolidation of NPL servicing business in their existing markets, (ii) expanding the knowledge and expertise into new markets and (iii) streamlining and digitalising debt collections in our region for greater consumer and regulatory transparency

Transition Impact

ETI score: 80

Resilient: Lack of servicing capacity in EBRD Region was identified as an important impediment for the development of the NPL market in many jurisdictions. The project will support an established NPL servicer in achieving scale (increased capacity) and expanding its operations to the new markets.

Competitive: The project will support one of the established NPL servicer in its strategy to expand its current operations, thereby fostering market competition.

Client Information


  • AxFina Holding SA is a spin-off company (November 2019) of DDM Holding AG that previously served as its NPL servicer arm. AxFina services distressed assets and loans on behalf of banks and investment funds in Southern, Central and Eastern Europe.

EBRD Finance Summary

EUR 6,240,000.00

Up to EUR 6,240,000

Total Project Cost

EUR 6,240,000.00

Up to EUR 6,240,000


Resource mobilisation: The EBRD will play a key equity investor role in mobilizing resources for AxFina Holding SA.

Standard-setting: Through the project, AxFina Holding SA will benefit from EBRD's expertise in setting higher standards for corporate governance.

Environmental and Social Summary

Categorised FI (ESP 2019). AxFina Holding S.A. is a distressed debt servicer and a new partner to EBRD. The environmental and social due diligence has been carried during which AxFina has provided information on relevant group policies and its local application in Hungary, including human resource management, working conditions, health and safety management, and the debt collection process, which meet the requirements under PRs 2 and 4. ESD is still working with the client on the areas of identification and management of social risks in NPL portfolios as related to PR9, and in regards to the application of group policies in different jurisdictions. The client will need to apply relevant provisions from PR9 in as far as they relate to the identification, management and reporting on social issues in NPL portfolios. Axfina applies a group Code of Conduct which will need to be applied to the different national legal frameworks. AxFina will need to comply with EBRD's Performance Requirements 2 and 4, continue to carry out a social risk screening and management aligned with relevant provisions of PR9. AxFina and any companies it outsources to will need to continue to manage potential social impacts on borrowers by diligent application of its Code of Conduct and in line with any applicable national Codes of Conduct for NPLs. AxFina will need to submit annually to the EBRD a report in an agreed format on their compliance with the applicable PRs. There is no GET component associated with this project.

Technical Cooperation and Grant Financing


Company Contact Information

Nikola Avramovic

PSD last updated

22 Dec 2020

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 EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 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.

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 (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 to get guidance and more information on IPAM and how to submit a request.


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