ESIF/EBRD Water Sector FW-Guarantee-Raiffeisenbank

Location:

Bulgaria

Project number:

51201

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FW

Approval date:

09 Jun 2020

Status:

Approved

PSD disclosed:

17 Jul 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

An unfunded risk sharing limit under the Guarantee Window of the ESIF/EBRD Water Sector Financing Framework (the "WWW FW") of up to EUR 40 million with Raiffeisenbank (Bulgaria). 

Project Objectives

The main objective of the project is to facilitate the structuring of long-term bank loans to fund the investment programmes of regional water operators and ultimately to address the existing funding gap in the water and wastewater sector in Bulgaria, thus supporting the country in achieving compliance with the EU's urban waste water and drinking water directives.

The project is in line with the EBRD's strategic priorities outlined in the country strategy for Bulgaria (BDS/BU/19-01 (Rev 1)), to (i) support sustainable infrastructure development through regional connectivity, green municipal solutions, decarbonisation and resource efficiency and (ii) strengthen the resilience of financial intermediation.

Transition Impact

ETI score: 60

The approval of a CIFI is in line with the expected arrangements and terms specified at the outset of the WWW FW.

In line with the framework approval, financing through commercial banks is viewed to carry the strongest transition impact. 

Client Information

RAIFFEISENBANK BULGARIA EAD

Raiffeisenbank (Bulgaria) is a key player on the Bulgarian banking market, ranking 6th among 24 banks with a market share of 7.7% in terms of assets at the end of 2019. It is among the leading universal banks in the country, offering bank services in all customer segments - corporate and investment banking, small and medium-sized enterprises and retail banking. Raiffeisenbank (Bulgaria) is recognised as a proactive, innovative and quick in delivering top quality products and services.

Raiffeisen Bank International AG (RBI) owns indirectly 100% of Raiffeisenbank (Bulgaria)'s share capital through Raiffeisen CEE Region Holding GmbH.

EBRD Finance Summary

EUR 40,000,000.00

Total Project Cost

EUR 40,000,000.00

The limit will be funded with EBRD's ordinary capital resources of up to EUR 20 million. The remaining EUR 20 million will be sourced from the EBRD-EU Special Fund. The EBRD-EU Special Fund financial resources are being managed by the EBRD pursuant to an operational agreement between the Bank and the Fund Manager of Financial Instruments in Bulgaria signed in October 2018.

Additionality

The Bank's involvement in the guarantee window of the WWW FW will be additional due to the ability to crowd in commercial banks by providing a guarantee, thus addressing the lack of eligible collateral at the RWOs.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Ivelina Veleva, Product Manager, Project Finance
Ivelina.VELEVA@raiffeisen.bg
+359 2 91985881
www.rbb.bg
Business Center EXPO 2000 PHASE III, floor 5, 55 Nikola I. Vaptzarov Blvd., 1407 Sofia, Bulgaria

Implementation summary


PSD last updated

04 Aug 2020

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 how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

Share this page: