Provision of a senior unsecured loan of up to EUR 5.0 million to be provided in two tranches (a first tranche of EUR 1.25 million and a second tranche of EUR 3.75 million) to Raiffeisen Bank Kosovo JSC ("RBKO") under the Green Economy Financing Facility - Western Balkans ("GEFF WB").
The transaction supports investments in high-performance energy efficiency technologies, materials and solutions undertaken in, or in relation to, privately-owned residential dwellings or buildings ("sub-projects") in Kosovo. Sub-projects are selected according to technical and financial eligibility criteria set forth in the policy statement for GEFF WB. 100% of the use of proceeds will be related to Green Economy Transition investments.
ETI score: 80
The project contributes to the objectives of GEFF WB, supporting the Green and Competitive TI qualities.
Green: The project will contribute to building a green economy by facilitating the expansion of lending for investments in high performance residential energy efficiency technologies. The innovative lines of finance available through local financial institutions will help address the entrenched behaviour and demonstrate the business case for investing in higher performance technologies to end-beneficiaries, PFIs and other market participants, thus creating green investment demand.
Competitive: The project will contribute to building a more competitive financial sector by building the capacity of the PFIs for financing green economy projects. Furthermore, the introduction of lending products based on energy efficiency requirements going beyond prevailing standards will stimulate the development of the market for, and supply of, high performance green technologies, materials and services.
RAIFFEISEN BANK KOSOVO JSC
RBKO, a subsidiary of Raiffeisen Bank International ("RBI"), is the largest commercial bank in Kosovo with EUR 1,022 million in total assets as of YE 2019 (23.3% of the system's total). The entity is headquartered in Pristina and has the largest network in the country with 45 branches and 870 employees as of YE 2019. It operates as a fully owned subsidiary of RBI that is rated A3 (stable) by Moody's and A- (negative) by S&P.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing via RBKO with Technical Cooperation ("TC") and investment incentives into a package that promotes residential green economy investments in Kosovo.
Environmental and Social Summary
Categorised FI (ESP 2019). Raiffeisen Bank Kosovo's completed EBRD E&S due diligence questionnaire confirmed the client implemented RBI's organisation-wide Environmental and Social Management System (ESMS). Following the stipulation of Performance Requirement 9, paragraph 8, EBRD will accept the application of the IFC's Performance Standards for this transaction (more specifically, the Worldbank / MIGA Environmental and Social Covenants) which are largely aligned with EBRD PRs; however the client will need to implement additional E&S EBRD provisions such as the EBRD's Exclusion list, Category A definition, and Referral requirement, as well as PR2/4 compliance. RBKO will also be asked to undertake an E&S risk screening for exposures under 5mln (currently not required by IFC/MIGA provisions). RBKO will report to EBRD on an annual basis on E&S issues.
Technical Cooperation and Grant Financing
Tehincal cooperation (TC): EUR 5.1 million have been secured to support the preparation, implementation and monitoring of GEFF WB. RBKO will share up to 15% of TC costs that benefit them directly through a marketing campaign, same as for other GEFF lines in the region. Grant resources are provided by the Republic of Austria and the multi-donor funded Western Balkans Investment Framework to fund TC programme under the GEFF.
Non-TC: EUR 1.03m for investment incentives to sub-borrowers for the implementation of eligible sub-projects in line with the Policy Statement. Grants are provided by the European Union.
Company Contact Information
+383 (0) 38 222 222 319
99 Robert Doll St. 10000 Prishtina Kosovo
PSD last updated
22 Dec 2020
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