Provision of a senior unsecured loan to Addiko Bank Serbia ("ABSe") of EUR 40 million under the Financial Intermediaries Framework ("FIF") for on-lending to small and medium enterprises (SMEs) in Serbia. The loan is also an important resource to SMEs in the context of the ongoing crisis and a post Covid-19 crisis response, allowing uninterrupted access to mid-term financing.
The proposed project will improve access to finance for SMEs, which are the main source of employment in the private sector and a major contributor to the economy in Serbia. The bank is successfully implementing a SME-focused strategy and well-positioned to provide much needed financing to smaller businesses in the country via its regional branch network. The focus will also be on lending in the regions outside the capital and attracting new SME clients.
ETI score: 60
The project contributes to the objectives of the EBRD Financial Intermediary Framework, supporting the Competitive and Resilient transition qualities. The project will improve 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, ABSe is well-positioned to provide much-needed financing to smaller businesses and to contribute to the development of SMEs in the country.
ADDIKO BANK AD BEOGRAD
ABSe is a mid-sized bank in Serbia with a market share of 2.7% by its loan book and 2.2% by its total assets, ranked as the 14th largest out of 26 operating banks on the market as of 2020-end. It operates via 37 branches and aims to grow its presence on the market via direct and indirect sales channels (internet and agent network).
EBRD Finance Summary
Total Project Cost
The EBRD loan will provide much-needed long term financing, which will support the market segment as a whole and enable the continuation of the successful implementation of previous projects. EBRD along with other IFIs is one of the rare providers of long term funding which local banks need in order to decrease maturity mismatch on their balance sheets.
ABSe will be following and enforcing clearly defined eligibility criteria for sub-borrowers, EBRD environmental and social standards, higher financial covenants and reporting requirements, thus contributing to the competitiveness and resilience of the financial sector as intended under the FIF Framework.
Environmental and Social Summary
Categorised FI (ESP 2019). ABSe is an existing client of the Bank and has provided satisfactory annual E&S Reports to the Bank to date. It 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 and trade finance including adherence to the EBRD E&S Exclusion List and FI referral list in ESP 2019 and submit annual E&S reports to the Bank. ABSe needs to have a system in place for dealing with external stakeholders and communication on ESG related matters. Sub-borrowers financed through ABSe's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements. The Fund's use of proceeds 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
Company Contact Information
Milutina Milankovica 7V 11070 Novi Beograd
PSD last updated
26 Oct 2022
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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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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.