FIF - Addiko Bank Serbia SME III

Location:

Serbia

Project number:

54054

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

30 Nov 2022

Status:

Approved

PSD disclosed:

26 Oct 2022

Project Description

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.

Project Objectives

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.

Transition Impact

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.

Client Information

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

EUR 40,000,000.00

Total Project Cost

EUR 40,000,000.00

Additionality

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

None

Company Contact Information

Petar Ivkovic
petar.ivkovic@addiko.com
+381112226532
www.addiko.rs
Milutina Milankovica 7V 11070 Novi Beograd

Implementation summary


PSD last updated

26 Oct 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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 compliance@ebrd.com. 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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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