Long-term senior unsecured loan of up to EUR 2 million to PCBM for on-lending to small and medium-sized enterprises in North Macedonia. The loan is envisaged under the Sustainable Reboot SME Programme ("Reboot SME").
The loan is intended to provide financing for on-lending to local SMEs for investments in high performance technologies and services in order to introduce and implement EU and other international quality standards. At least 70 per cent of the use of the proceeds is expected to be related to Green Economy Transition ("GET") investments.
ETI score: 60
The project supports the Competitive and Green TI qualities.
The Competitive quality will be supported by: (i) facilitating SMEs' increased competitiveness; and (ii) prioritising investments that result in compliance with EU Directives and other relevant international standards. The project will also facilitate investments in green technologies that will drive the transition to an environmentally sustainable, lower-carbon and climate-resilient green economy, thus supporting the Green quality.
PROCREDIT BANK AD
ProCredit Bank AD Skopje ("PCBM"), a subsidiary of ProCredit Holding, is the sixth largest private bank in North Macedonia in terms of assets. It is a universal bank with a focus on SME lending (approx. 90% of portfolio), green finance and digitalisation.
EBRD Finance Summary
Total Project Cost
Combining the necessary long-term financing with technical support and targeted investment incentives into a package that promotes green investments that will improve the competitiveness of SMEs.
Environmental and Social Summary
Categorised FI (ESP 2019). PCBM is an existing client and its performance to date for existing exposures has been satisfactory. PCBM will be required to continue to comply with PRs 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the expanded EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit annual E&S reports to the Bank. Sub-borrowers financed through PCBM's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements. The GET share associated with this transaction is 70%.
The Project's use of proceeds or allocated multiple 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
The project will be supported by a comprehensive technical assistance to PCBM and sub-borrowers to facilitate the project preparation and successful implementation of the Reboot SME programme.
The source for TC funds is the EBRD's Shareholders' Special Fund and other potential donors.
The source for non-TC funding is Norway, Luxemburg, United States of America via the Small Business Impact Fund and other potential donors.
Company Contact Information
+389 02 3219 574
Manapo 7 1000 Skopje Republic of North Macedonia
PSD last updated
13 Apr 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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.
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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).
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 email@example.com to get guidance and more information on IPAM and how to submit a request.