Provision of a long-term senior unsecured loan of up to EUR 4 million to Stopanska Banka ("STB") for on-lending to small and medium-sized enterprises ("SMEs") 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% 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.
STOPANSKA BANKA AD SKOPJE
Stopanska Banka AD Skopje ("STB" or "bank") is the oldest bank in North Macedonia, founded in 1944. It operates as a universal bank and ranked as the largest bank in the country by net loans with 21.1% market share and second by total assets and customer deposits, holding 18.0% and 19.1% of the market, respectively at YE2021. STB is owned by National Bank of Greece ("NBG") with 94.6% stake, with the remainder held by minority investors.
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). Although STB is an existing client through a TFP line since 1999, there has been no business activity since 2010, hence no Annual Environmental & Social Reports were submitted by STB. Environmental and Social (E&S) due diligence was undertaken through E&S questionnaire which demonstrated STB has no E&S policy and procedures in place nor E&S dedicated resources, however they are compliant with national labour and H&S laws. STB will be required to comply with PRs 2, 4 and 9, implement E&S covenants in the Loan Agreement including E&S training and the EBRD's E&S Risk Management Procedures for TFP and 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 (AESRs) to the Bank. Sub-borrowers financed through SB'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 STB 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 2 32 95 593
+389 2 31 20 343
PSD last updated
11 May 2022
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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)
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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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.