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 the ultimate shareholder, Intesa Sanpaolo SA.
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.
INTESA SANPAOLO BANKA DD BOSNIA AND HERZEGOVINA
ISP BiH is the third largest bank in Bosnia and Herzegovina with assets of EUR 1,193.5m and a market share of 9.6% by total assets, 10.9% by customer loans and 9.0% by customer deposits as of YE 2020. The bank is headquartered in Sarajevo and services the entire territory of BiH through electronic channels and a network of 47 branches. At YE 2020, the bank had 562 employees.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing via ISP BIH 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). ISP BiH is an existing client and has provided satisfactory annual E&S Reports to the Bank to date. The AESR for 2020 was submitted by the Bank and reviewed by ESD. The Bank is required to continue to comply with PRs 2, 4 & 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the EBRD E&S Exclusion 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. Potential renewable energy investments under the GEFF framework will have to follow the E&S eligibility criteria for such investments (solar, wind, geothermal, bioenergy or hydro power, as the case may be).
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
+387 33 49 77 11
+387 33 49 78 18
Obala Kulina bana 9a 71000 Sarajevo Bosna i Hercegovina
PSD last updated
07 Oct 2021
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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).
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