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).
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.
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.
NLB BANKA AD SKOPJE
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
Total Project Cost
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
+389 2 5100 867
Majka Tereza No.1, 1000 Skopje
PSD last updated
11 Nov 2021
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