A senior unsecured loan up to EUR 3m (the "SMECSP Loan") in two tranches, first tranche of EUR 1m and second tranche of EUR 2m, under the Western Balkans SME Competitiveness Support Programme (SME-CSP). The 2nd tranche is uncommitted and its commitment will be at EBRD's sole discretion.
The Loan is envisaged to provide financing for on-lending to local SMEs for investments to upgrade production facilities and comply with various EU Directives in the field of environmental protection, workers' safety and product quality and safety and become competitive. Support to SMEs is tailored as a combination of access to finance with TC and non TC assistance. At least 60% of the use of proceeds will go towards financing GET-eligible investments.
ETI score: 60
The project contributes to the objectives of the Regional SME-CSP, supporting the Competitive and Resilient TI qualities.
Competitive: The Programme will be encouraging the competitiveness of SMEs in the Western Balkans, by (i) supporting SMEs in accessing finance towards EU standards investments; and (ii) assisting SMEs to access advice and know-how for introducing and implementing EU standards and becoming competitive.
Resilient: The Programme fosters the resilience of SMEs as Sub-borrowers will be expected to be commercially viable, which will be reflected in the expected strong underwriting expertise and adequate portfolio quality of the PFIs.
CRNOGORSKA KOMERCIJALNA BANKA AD PODGORICA
Crnogorska Komercijalna Banka ("CKB", not rated), a 100% subsidiary of OTP Bank Nyrt ("OTP", rated BBB (negative) by S&P and Baa1 by Moody's) is the largest bank in Montenegro. In December 2020, CKB completed the process of merging with Podgoriika banka AD Podgorica ("PB"). It currently holds a market share of 26% by total assets (32% in terms of net loans). Headquarted in Podgorica, the bank has 18 branches and 15 sub-branch offices. CKB is also a 100% owner of OTP Debt Collection.
EBRD Finance Summary
Total Project Cost
Combining the necessary long-term financing with technical support and targeted investment incentives into a package that promotes green investments.
Environmental and Social Summary
Categorised FI (2019 ESP). Crnogorska Komercijalna Banka is an existing client and its environmental and social (E&S) performance has been satisfactory to date as evidenced by annual reporting on environmental and social matters. CKB has formally adopted a ESG Risk Management Rulebook in loan origination and monitoring to identify risk, measure, monitor and report on E&S related risks. CKB's portfolio is mostly exposed to wholesale retail and trade, accommodation and food service activities, and public administration and defence (compulsory social security), which are associated with predominantly low-medium E&S risk. CKB will be required to continue to implement the Environmental and Social Risk Management Procedures for Micro, SME and Corporate Lending; comply with the EBRD's Performance Requirements (PRs) 2, 4 and 9 including adherence to the expanded EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit Annual E&S Reports to the Bank. All sub-loans will be required to comply with national environmental, health, safety and labour (EHSL) requirements. Should the use of proceeds from EBRD investment be allocated to future solar sub-projects, the project will need to comply with the EBRD Solar Supply Chain Risk Management Approach.
Technical Cooperation and Grant Financing
TC: The TC (EUR 12.14 million for the Programme) will include support for Programme Consultants that will assist with the implementation, marketing and monitoring of the SME CSP WB Programme and conduct a separate verification of the technical implementation of the investments by the Sub-borrowers before the incentive payment is released.
Non-TC: EUR 0.45 million for investment incentives (15% of the Loan amount) to Sub-borrowers for the implementation of eligible investments in line with the CSP WB Policy Statement.
Company Contact Information
+382 20 415 611
+382 20 415 611
Bulevar revolucije 17, Podgorica, Montenegro
PSD last updated
12 Dec 2022
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