Western Balkans GEFF II - NLB Banka Skopje


North Macedonia

Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

09 Nov 2021



PSD disclosed:

09 Nov 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 2.0m (the "GEFF Loan") in two equal tranches of EUR 1.0m (the 2nd tranche will be uncommitted) under the Western Balkans Green Economy Financing Facility II (WB GEFF II). 

Project Objectives

The loan is envisaged to provide financing for on-lending to the residential sector (individuals, housing collectives, producers, vendors of green technologies and service providers) for investments supporting the Green Economy Transition ("GET") in North Macedonia. It will build on the successful utilisation of the first GEFF programme by NLB Banka a.d. Skopje ("NLB SK") - the bank signed one credit line of EUR 3.0m (OpID 49721), which is almost fully disbursed. This GEFF II line will satisfy the increasing demand created on the market, which has proven to be solid and constant as awareness of the advantages of the GEFF product are rising among banks and customers in North Macedonia. 

Transition Impact

ETI score: 80

The project contributes to the objectives of the 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 building the capacity of partner financial institutions for financing green economy projects. 

Client Information


NLB Banka a.d. Skopje ("NLB SK'') is the third largest bank in North Macedonia (16.7% market share by total assets at YE20). It operates through a network of more than 50 branches across North Macedonia (around half of them in Skopje), has nearly 900 employees and caters to both corporate and retail customers. The bank has maintained consistent growth and profitability over the years. 

EBRD Finance Summary

EUR 2,000,000.00

Total Project Cost

EUR 2,000,000.00


Additionality derives from (i) the innovative financing structure addressing the maturity mismatch of funding in the sector, (ii) the higher standard-setting through EBRD expertise on higher financial standards, and (iii) the acquisition of knowledge, innovation and capacity building through the TC consultant. 

Environmental and Social Summary

Categorised FI (ESP 2019). NLB SK is an existing client and is in compliance with PRs 2, 4 and 9 under previous exposures. NLB SK will be required to continue to comply with the EBRD's Environmental and Social Risk Management Procedures for Corporate Loans, SME and Micro Loans, as well as the PRs, including adherence to the expanded EBRD E&S Exclusion List and Referral List introduced with ESP 2019, and submit annual environmental and social reports to the Bank. Sub-borrowers financed through NLB SK's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements. For applicable GEFF projects, the E&S eligibility criteria for renewable energy need to be applied. The Project's actual use of proceeds may include solar sub-projects. Such sub-projects will be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/21-35) and any subsequent guidance developed under that approach.

Technical Cooperation and Grant Financing

TC: TC funds of up to EUR 2.965 million at the Facility level to support PFIs and sub-borrowers (individuals, housing collectives, suppliers and vendors of green technologies, and service providers) for transfer of know-how and awareness raising about investments in modern energy efficiency technologies in the residential building sector. TC funds for the proposed transaction are 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 ("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

Tijana Blazhevska
+389 2 5100 867
Majka Tereza No.1, 1000 Skopje

PSD last updated

11 Nov 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.

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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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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