Provision of a senior unsecured loan of up to EUR 5.0m under the Regional SME Competitiveness Support Programme ("CSP") in two tranches of EUR 3.0m and EUR 2.0m (2nd tranche uncommitted).
The project will support investments in small and medium-sized enterprises (SMEs) to upgrade production facilities and comply with various EU Directives in environmental protection, workers' safety and product quality and safety. The investments will be selected based on the technical and financial eligibility criteria set forth in the Policy Statement. Support to SMEs is tailored as a combination of access to finance with TC and non TC assistance. At least 60% of the use of proceeds will be related to Green Economy Transition ("GET") investments.
ETI score: 60
The project contributes to the objectives of the Regional SME-CSP, supporting the Competitive and Resilient TI qualities.
Competitive: The project will contribute towards: (i) supporting SMEs in accessing finance towards EU standards investments; and (ii) assisting SMEs to access advice and know-how for introducing and implementing EU standards and becoming competitive.
Resilient: Sub-borrowers will be expected to be commercially viable, which will be reflected in the expected strong underwriting expertise and adequate portfolio quality of the PFIs.
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 the 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 financing structure addressing the maturity mismatch of funding in the sector, and (ii) the higher standard-setting through EBRD expertise on higher financial standards.
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: The TC will include support for Programme Consultants ("Consultants", "PC") that will assist with the implementation, marketing and monitoring of the Programme and a separate verification of the technical implementation of the investments by the Sub-borrowers before the incentive payment is released.
Non-TC: EUR 0.75 million for investment incentives to sub-borrowers for the implementation of eligible investments in line with the CSP WB Policy Statement.
The TC and the non-TC resources under the Programme are funded with grant contributions from the European Union and the EBRD Shareholders Special Fund.
Company Contact Information
+389 2 5100 867
Majka Tereza No.1, 1000 Skopje
PSD last updated
11 Nov 2021
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Independent Project Accountability Mechanism (IPAM)
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