EBRD, together with the Enterprise Expansion Fund ("ENEF"), to provide financing to HTEC doo Beograd ("HTEC" or the "borrower") in the form of a EUR 12.0m long term loan to support HTEC's growth and development strategy, the first stage of which envisages the acquisition of the well-established Serbian IT company Execom doo Novi Sad ("Execom" or the "target").
The project will enable the development of HTEC's strong regional R&D hub in the Western Balkans which in return will support local engineering talent and help offer world class services much needed under the conditions of remote working patterns.
ETI score: 60
The transition impact stems from the following two transition qualities:
Competitive: The acquisition will facilitate the introduction of improved knowledge management practices for the target, which are already embedded in the business processes of the acquirer. The new entity will benefit from the target's specific sector expertize by extending these additional services to the existing clients.
Integrated: The acquisition will enable the expansion of activities in foreign markets where the target is present.
HIGH TECH ENGINEERING CENTER DOO BEOGRAD
Founded in 2008, HTEC Group Inc. (the "Parent") with its fully owned subsidiary, HTEC doo Beograd, (the "Company", "HTEC" or the "Borrower") provides software and hardware engineering services, and digital solutions consultancy to companies ranging from large corporates to venture-backed companies and start-ups mainly based in Europe and USA.
EBRD Finance Summary
Total Project Cost
EBRD's additionality stems from providing funding under a tailor-made structure, availability of which is limited in the current market environment.
Environmental and Social Summary
Categorised B (2014 ESP) and Low-Medium Risk. ESDD based on ESD's review of the completed ESDD Questionnaire as well as follow up communication with the client confirmed that the project and client are not associated with significant environmental and social issues. HTEC is in compliance with national E&S law and has adequate E&S risk management capacities. HTEC's HR and OHS are largely in line with PR2 & 4, and it has been confirmed that the proposed acquisition will not be associated with labour restructuring. For the upcoming project, HTEC is required to comply with EBRD PRs as well as submit an annual ES report to the Bank. Specifically, HTEC has the following accreditations: ISO27001 (information security); ISO13485 (data integrity in the life science industry), and ISO9001 (quality of management). There is no GET component associated with this project.
Technical Cooperation and Grant Financing
Financial due diligence of the Borrower and the Target, Amount: EUR 26,000; Commercial and Technical due diligence of the Borrower and the Target, Amount: EUR 75,000; English Law Legal Counsel and Serbian Law Legal Counsel, Amount: EUR 28,000 and EUR 18,500, respectively. TC Source: Western Balkans SME Platform - ENEF Support.
Company Contact Information
+381 11 228 11 82
Milutina Milankovica 11/B, Belgrade, Serbia
PSD last updated
19 Aug 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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).
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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.