Provision of a senior unsecured loan of up to EUR 8 million to be provided under the Go Digital Pilot in BiH programme (the "Programme"), with up to 5 years maturity, including 2 years of grace period. The loan will be fully guaranteed by the sole shareholder, Intesa Sanpaolo S.p.A. The Programme is supported with donor funds in the total amount of EUR 9m from the European Union.
The Project supports the aim of the Programme to: (i) improve SMEs' access to finance in order to invest additional resources to introduce EU standards through the provision of financing and investment incentives; (ii) pilot an approach to supporting SMEs that invest in automation and digitalisation, (iii) support transition to a green economy ("GET technologies"), by targeting a GET-eligible share of at least 60%, and (iv) increase the awareness and knowledge of SMEs in BiH through the Advice for Small Business ("ASB") services with a focus on automation and digitalisation projects.
ETI score: 65
The Project contributes to the overall objectives of the Go Digital Pilot in BiH Programme, supporting the Competitive and Green TI qualities.
Competitive: The Project will encourage the Competitiveness of SMEs in Bosnia and Herzegovina, by (i) supporting SMEs in accessing finance towards EU standards investments; (ii) by targeting the financing of a significant share of automation and digitalisation among those investments; and (iii) by offering potential and participating sub-borrowers advice and know-how for overall greater competitiveness of SMEs with a focus of introducing and implementing automation and digitalisation investments.
Green: The Project will also contribute to the Green TI quality by addressing energy efficiency as part of the eligible activities of investments of SMEs in BiH. The project will contribute to building a green economy in the country by facilitating the expansion of climate change mitigation investments and sharing the positive demonstration effect through on-lending to SMEs.
INTESA SANPAOLO BANKA DD BOSNIA AND HERZEGOVINA
ISP BiH is the third largest bank in Federation of Bosnia and Herzegovina with assets of EUR 1,276.6m and a market share of 9.6% by total assets, 10.5% by customer loans and 8.7% by customer deposits as of YE 2021. The bank is headquartered in Sarajevo and services the entire territory of BiH through electronic channels and a network of 47 branches. At YE 2021, the bank had 562 employees.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing via ISP BiH with TC and investment incentives into a package that promotes automation and digitalisation as well as green lending.
Environmental and Social Summary
Categorised FI (ESP 2019). ISP BiH is an existing client and has provided satisfactory annual E&S Reports to the Bank to date. The AESR for 2021 was submitted by the Bank and reviewed by ESD. The Bank is required to continue to comply with PRs 2, 4 & 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the EBRD E&S Exclusion and Referral List introduced with ESP 2019 and submit annual E&S reports to the Bank. Sub-borrowers financed through ISP BiH's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements. The GET share associated with this transaction is 60%.
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 entire Go Digital Pilot in BiH Programme is supported with grant funds from the European Union for financing of (i) Investment Incentive payments to sub-borrowers ("Non-TC") of total EUR 6,000,000 and (ii) Technical Cooperation of total EUR 1,600,500.
Non-TC: Grant funds are provided for investment incentives to sub-borrowers for the implementation of eligible investments in line with the Programme Policy Statement.
TC: The TC includes support for a Project Consultant that will assist with the implementation and monitoring of the entire Programme and a separate Verification Consultant that will verify the technical implementation of the investments by the sub-borrowers before the incentive payment is released. Additionally, ASB, with a total of EUR 994,500 grant from the European Union, will support SMEs (that could be potential or participating sub-borrowers under the Programme) with direct advice, training and other outreach activities with a focus on Automation and Digitalisation priority areas. These funds will be spent according to ASB policies of co-payment.
Company Contact Information
+387 33 49 77 11
+387 33 49 78 18
Obala Kulina bana 9a 71000 Sarajevo Bosna i Hercegovina
PSD last updated
29 Jun 2022
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