Western Balkans GEFF II - ProCredit Bank BiH


Bosnia and Herzegovina

Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

08 Jun 2021



PSD disclosed:

09 Jun 2021

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."

Project Description

Provision of a senior unsecured loan of up to EUR 2.0 million to be provided in two tranches (a first tranche of EUR 1.0 million and a second tranche of EUR 1.0 million) under the Western Balkans Green Economy Financing Facility II. The second tranche will be uncommitted and its commitment will be in the EBRD's sole discretion. The loan will be fully guaranteed by ProCredit Holding AG & Co. KGaA, the sole shareholder of ProCredit Bank dd BiH.

Project Objectives

This project will contribute to the objectives of WB GEFF II, supporting the Green and Competitive transition qualities.

Transition Impact

ETI score: 80

The project contributes to the overall objectives of Western Balkans GEFF II (BDS20-183), supporting the Green and Competitive TI qualities. The TI benchmarks will therefore be monitored and assessed at the Framework level. 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. The allocation to New Dwelling Window will be capped at 30% of Facility. Competitive: The project will contribute towards building a more competitive financial sector by building the capacity of the PFIs for financing green economy projects.

Client Information


ProCredit Bank dd BiH ("PCBiH") is an SME oriented commercial bank in Bosnia and Herzegovina with 1.9% market share in terms of assets, 2.2% market share in terms of gross loans and 1.3% in terms of deposits as of 31 Dec 2020. 

EBRD Finance Summary

EUR 2,000,000.00

Total Project Cost

EUR 2,000,000.00


Additionality is achieved by combining the necessary long-term financing via PCBiH with TC and investment incentives into a package that promotes residential green economy investments in Bosnia and Herzegovina.

Environmental and Social Summary

Categorised FI (ESP 2019): PCBiH is a new client and will be required to comply with PRs 2, 4 & 9, and further, implement and comply with EBRD's Environmental & Social (E&S) Procedure for Micro, SME and Corporate Lending. The environmental and social (E&S) due diligence was undertaken by ESD based on the review of the E&S due diligence questionnaire. PCBiH was found in compliance with PRs 2, 4 and 9. The client benefits from strong corporate policies of ProCredit Germany and has adequate capacity and procedures in place to appropriately screen, manage and monitor EBRD's use of proceeds for this transaction, which targets sustainable buildings. The client will be required to submit annual environmental and social reports to the Bank. This transaction is 100% GET.

Technical Cooperation and Grant Financing

A. TC: EUR 2.965m is set for TC support at Facility level. EUR 1 million has been sourced from SSF and the remainder will be sourced the government of Austria. Client contributions will be sought in line with the Arrangements for Cost Sharing Between Donors and Clients and Policy Review (the BDS14-024F) and guidelines. Exact amount to be defined during project implementation.

B. Non-TC: Up to EUR 409,000 is sourced from the European Union level for investment incentives to sub-borrowers for the implementation of eligible sub-projects in line with the Policy Statement.

Company Contact Information

Hazim Arnautovic
Franca Lehara bb, 71000 Sarajevo, Bosnia and Herzegovina

Implementation summary

PSD last updated

09 Jun 2021

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
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 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 compliance@ebrd.com. 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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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