Provision of a long-term senior unsecured loan to Erste Bank AD Novi Sad (EBS) for on-lending to small and medium enterprises (SMEs) in Serbia.
The project will contribute to the expansion of lending to private businesses through working capital lines and investment loans to SMEs, including enterprises operating in economically less-developed regions of the country. Furthermore, the transaction supports EBS's growth strategy and diversification of its funding sources.
ETI score: 60
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, EBS 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.
ERSTE BANK AD NOVI SAD
EBS is a dynamic bank focused on operations with retail clients, local communities, and small and medium-sized enterprises, with an experienced management team and consistently strong performance. The bank has a market share of 6% and is ranked 6th by total assets among 26 banks in Serbia. It is a subsidiary of Erste Group, banking group with a 200-year tradition, one of the largest financial services providers in the Eastern part of Europe in terms of clients and total assets. EBS is a systematically-important bank in Serbia according to the Central Bank classification.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised FI (2019 ESP). Erste Bank is an existing client and its performance to date for existing exposures has been satisfactory. Erste Bank 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 includes adherence to the EBRD's Environmental and Social Exclusion List and submission of annual E&S reports to the Bank. Sub-borrowers financed through Erste Bank's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation and Grant Financing
No Technical Cooperation is envisaged for this project.
Company Contact Information
+381 (0)21 489-0621
Milutina Milankovica 3a 11070 Novi Beograd
PSD last updated
23 Mar 2020
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Independent Project Accountability Mechanism (IPAM)
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