Provision of a long-term senior unsecured loan to 3 Banka Serbia ("3B" or the "Company") up to RSD 1.2bn (c. EUR 10.2m) under the Financial Intermediaries Framework ("FIF") for on lending to micro, small and medium-sized enterprises.
The project will contribute to the expansion of lending to private businesses through working capital lines and investment loans to farmers, enterpreneurs and MSMEs, including those operating in economically less-developed regions of the country. Furthermore, the transaction supports 3B's growth strategy and provides a source of medium term local currency funding.
ETI score: 60
The project contributes to the objectives of the Financial Intermediary Framework, supporting the Competitive and Resilient transition qualities. The project improves the availability of medium-term funding for MSMEs, which are the main source of employment in the private sector and a major contributor to the economy. The project focuses on regional outreach and attraction of new MSME clients. As a new client under the FIF programme with nationwide branch network, 3Bank is a potential strong partner to reach MSMEs in Serbia especially in rural areas. The focus will also be on lending in the regions outside the capital, attracting new SME clients and maintaining adequate portfolio quality.
3 BANKA AD
3B is bank from Novi Sad focusing almost exclusively on micro lending to agro households (farmers), entrepreneurs and retail clients in rural regions. As at YE21, the Bank had total assets of EUR 185m and loan book of EUR 143m. 3B is ranked 19 out of 24 banks in the sector with a 0.4% market shares by assets. The bank serves more than 66 thousand loan clients through a countrywide network of 4 branches (located in largest cities and which collect deposits) and 30 credit offices (in rural areas). The Bank had 503 staff at YE21.
EBRD Finance Summary
Total Project Cost
EBRD provides 3B with both local currency and medium term funding. Euroisation of the Serbian banking sector is high with EUR loans making up ca 60% of the banking sector gross loan portfolio and EUR deposits at YE 2021. This will support the strengthening of the bank's balance sheet, via decreased maturity mismatch and will ensure availability of local currency to MSME clients. Moreover, 50% of 3B's deposits are short-term. The banks in Serbia are largely funded by short-term deposits (c. 70% of total liabilities).
3B will be following and enforcing clearly defined eligibility criteria for sub-borrowers, EBRD environmental and social standards, thus contributing to the competitiveness and resilience of the financial sector as intended under the FIF Framework.
Environmental and Social Summary
Categorised FI (2019 ESP): 3B will be required to comply with PRs 2, 4 & 9 and EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans, and will be required to submit annual environmental and social reports to the Bank. ESD's review of the completed E&S due diligence questionnaire showed that 3B has an E&S policy in line with SDGs in place. The client will be required to align existing procedures with EBRD E&S requirements and to nominate a person from senior management to have overall responsibility for implementing them. 3B will provide ESD with the names of relevant credit risk appraisal staff who will be provided with access to the EBRD's E&S risk management training programme on-line and who will the adopt the EBRD's E&S Exclusion List. These requirements will be covenanted in the loan agreement. 3B has been provided with E&S risk management tools and guidance documents to assist in managing the E&S risks of its loans. It is expected that 3B will achieve compliance with PR9 over time by adopting the E&S requirements satisfactory to the Bank and which will be continually monitored by the EBRD as per existing procedures.
Company Contact Information
Bulevar Oslobodjenja 2a, Novi Sad
PSD last updated
25 May 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
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 firstname.lastname@example.org. 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 email@example.com to get guidance and more information on IPAM and how to submit a request.