Senior unsecured loan of up to EUR 3.0 million to Sparkasse Bank Makedonija under the Western Balkans Green Economy Financing Facility II (WB GEFF II).
This facility will support investments in high-performance green technologies, materials and solutions undertaken in privately owned residential dwellings or buildings. The sub-projects will be selected according to technical and financial eligibility criteria set forth in the Policy Statement for WB GEFF II. 100% of proceeds will finance green investments.
ETI score: 80
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 partner financial institutions for financing green economy projects.
SPARKASSE BANK MACEDONIJA AD
Sparkasse Bank Makedonija AD Skopje is a universal commercial bank and the 7th largest bank in the country, with a 4% market share by total assets. It is fully-owned by Steiermarkische Bank und Sparkassen AG, Austria, which recently acquired Ohridska Banka from Societe Generale. Sparkasse Bank Makedonija and Ohridska Banka will merge in July 2021, after which the new bank will be the 4th largest in the local market with 12% market share.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing via Sparkasse Bank Macedonija with technical cooperation and investment incentives into a package that promotes residential green economy investments in North Macedonia.
Environmental and Social Summary
Categorised FI (2019 ESP). Sparkasse Bank Makedonija is an existing client and is due to submit an annual environmental and social (E&S) report for the reporting period 2020 prior to signing. The lender 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 GEFF II facility will need to comply with the E&S Eligibility Procedures for wind, hydro, solar, geothermal or biomass projects. Sparkasse will need to establish adequate E&S risk management capacity by hiring a duly qualified E&S specialist and participating in the EBRD's E&S training as available in addition to any further E&S issues/gaps identified in the annual E&S reports.
Technical Cooperation and Grant Financing
Technical cooperation (TC): Up to EUR 2.965 million have been set for technical cooperation at the Facility level to support both partner financial institutions and sub-borrowers (including individuals, housing collectives, suppliers and vendors of green technologies, and service providers). The objective of the technical cooperation 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 Western Balkans. The TC is essential to supporting the preparation, implementation and monitoring of the Facility. The TC is provided by the Shareholder Special Fund and the Government of Austria.
Non-TC: GEFF-WB II will also be supported by non-TC funds of up to EUR 9.63 million (for this sub-project amounts up to EUR 613,500) to be provided by the EU through the Western Balkans Investment Framework (WBIF) 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 3200 516
+389 2 3200 515
Makedonija Street 9-11, 1000 Skopje North Macedonia
PSD last updated
05 May 2021
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