Provision of a long-term senior loan to OTP Bank Serbia (OTP) for on-lending to small and medium-sized enterprises (SMEs).
The project will contribute to the expansion of lending to private businesses through working capital lines and investment loans to SMEs, including enterprises operating in economically less-developed regions of the country. Furthermore, the transaction supports OTP's growth strategy and the diversification of its funding sources. The bank will aim to allocate up to 10% of the proceeds to Green Economy Transition (GET) eligible projects which are expected to come from investments in renewable energy and energy efficient projects.
ETI score: 60
The project contributes to the objectives of the EBRD Financial Intermediary Framework (FIF), supporting the Competitive and Resilient transition qualities.
The project improves the availability of medium-term funding for SMEs, which are the main source of employment in the private sector and a major contributor to the economy.
With its wide regional outreach and SME-focused strategy, OTP is well-positioned to provide much-needed financing to smaller businesses and to contribute to the development of SMEs in the country.
The focus will also be on lending in the regions outside the capital, attracting new SME clients and maintaining adequate portfolio quality.
OTP BANKA SRBIJA AD
OTP Bank Serbia (OTP) is a systemic bank in Serbia with a market share of 17.1% by the loan book and 13.5% by the total assets as at 1Q22, ranked as the first out of 22 operating banks on the market in terms of the loan book (second in terms of total assets). It operates via 155 branches and employs ca. 2,700 people.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised FI (2019 ESP). OTP Bank will be required to comply with EBRD's PRs 2, 4 and 9, including the expanded Exclusion List and FI Referral List for any sub-projects that include activities listed in Appendix A to PR 9 and implement the EBRD's E&S Risk Management Procedures for Micro, SME and Corporate lending and submit annual E&S reports to the Bank. Sub-borrowers financed through OTP Bank's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements. The overall risk portfolio of the investments foreseen under this facility is low to medium risk, and OTP has appropriate procedures in place to manage such investments.
Company Contact Information
+381 11 30 11 496
Bulevar Zorana Djindjica 50 a/b, Novi Beograd, Serbia
PSD last updated
23 Aug 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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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).
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