Provision of a senior unsecured loan of up to EUR 2.0 million to be provided in one single tranche to Ohridska Banka AD Skopje under the Western Balkans Green Economy Financing Facility II (WB GEFF II).
The facility will support investments in high-performance green technologies, materials and solutions undertaken in privately-owned residential dwellings or buildings. Sub-projects will be selected according to technical and financial eligibility criteria set forth in the Policy Statement for WB GEFF II. 100 per cent of the use of proceeds will be related to Green Economy Transition investments.
ETI score: 80
The project contributes to the objectives of WB GEFF II, supporting the Green and Competitive TI qualities.
Green: The project will contribute towards building a green economy by facilitating the expansion of lending for investments into high performance residential green economy technologies.
Competitive: The project will contribute towards building a more competitive financial sector by increasing the capacity of the PFIs for financing green economy projects.
OHRIDSKA BANKA AD
Ohridska Banka (OB) is currently the 5th largest bank in North Macedonia. Previously a subsidiary of Societe Generale, OB was acquired by Steiermarkische Sparkasse in November 2019 and is expected to merge with Sparkasse Bank Macedonija in the summer of 2021. After the merger, the new combined entity will be the fourth largest bank, with a market share of 12 per cent.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing via OB with TC and investment incentives into a package that promotes residential green economy investments in North Macedonia.
Environmental and Social Summary
Categorised FI (2019 ESP). OB is an existing client and has provided satisfactory Annual E&S Reports to the Bank to date. OB will be required to continue to implement the environmental and social risk management procedure for Micro, SME and Corporate loans; continue to comply with the EBRD's Performance Requirements (PRs) 2, 4 and 9, 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. As applicable, sub-loans under the WB GEFF II facility will need to comply with the E&S Eligibility Procedures for wind, hydro, solar, geothermal or biomass projects. Ohridska will need to establish adequate E&S risk management capacity by hiring a duly qualified E&S specialist and participating in EBRD's E&S training as available.
Technical Cooperation and Grant Financing
Technical cooperation (TC): Up to EUR 2.965 million have been set for TC support at the Facility level to support both PFIs and sub-borrowers (including individuals, housing collectives, suppliers and vendors of green technologies, and service providers). The objective of the TC is to transfer know-how and raise awareness about investment in modern energy efficiency technologies in the residential building sector to support a green economy transition in the WB. The TC is essential to supporting the preparation, implementation and monitoring of the Facility. The TC fund for the proposed transaction is sourced from the SSF and the Government of Austria.
Non-TC: WB GEFF II will also be supported by non-TC funds of up to EUR 9.63 million (for this sub-project amounts up to EUR 409,000) to be provided by the EU through the Western Balkans Investment Framework for investment incentives payments to sub-borrowers for the implementation of eligible sub-projects in line with the levels and eligibility criteria as set forth in the Policy Statement of the Facility.
Company Contact Information
+ 389 2 15050
Orce Nikolov 54, 1000 Skopje, North Macedonia
PSD last updated
29 Apr 2021
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