Provision of a senior unsecured loan to Addiko Bank Serbia ("ABS") of EUR 20 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 Covid-19 crisis response and the post-crisis recovery, allowing uninterrupted access to mid-term financing.
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.
ETI score: 60
The project contributes to the objectives of the EBRD Financial Intermediary Framework, supporting the Competitive and Resilient transition qualities.
The project improves 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, ABS is well-positioned to provide much-needed financing to smaller businesses and to contribute to the development of SMEs in the country.
The focus will also be on lending in the regions outside the capital, attracting new SME clients and maintaining adequate portfolio quality.
ADDIKO BANK AD BEOGRAD
Addiko Bank Serbia ("ABS") 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
Total Project Cost
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.
ABS 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 (2019 ESP). ABS is an existing client of the Bank and its performance to date for existing exposures has been satisfactory. ABS will be required to comply with EBRD's PRs 2, 4 and 9, including the FI Referral List for any sub-projects that include activities listed in Appendix A to PR 9 and implement the EBRD's E&S Risk Management Procedures for Micro, SME and Corporate lending which include adherence to the EBRD's Environmental and Social Exclusion List and submission of annual E&S reports to the Bank. Sub-borrowers financed through ABS' loan will be required to comply with the national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation and Grant Financing
Company Contact Information
Bulevar Mihajla Pupina 6, Belgrade, Republic of Serbia
PSD last updated
22 Apr 2021
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