Provision of a senior unsecured loan of up to EUR 1 million to Komercijalna Banka a.d. Skopje ("KBS"), provided under the Western Balkans Green Economy Financing Facility ("GEFF"). The loan will have a tenor of up to 5 years, consisting of up to 2 years grace period and 3 years for principal repayment. KBS is the fifth bank in the North Macedonian market to join GEFF and to offer this kind of product to its sub-borrowers.
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 North Macedonia. Sub-projects are selected according to technical and financial eligibility criteria set forth in the Policy Statement for GEFF. 100% of the use of proceeds will be related to Green Economy Transition investments.
ETI score: 80
Green: The project will contribute towards building a green economy by facilitating the expansion of residential energy efficiency lending in North Macedonia and positive demonstration effects of green economy projects.
Competitive: The project will contribute towards building a more competitive financial sector through developing the internal capacity of the PFIs for financing green economy projects.
KOMERCIJALNA BANKA AD SKOPJE
KBS is the largest bank in the Republic of North Macedonia with assets of EUR 1.87bn and a market share of 22.7% at end-2019. The company is headquartered in Skopje and services the entire territory of North Macedonia through a network of 11 regional branches as well as 54 city-branches served by a total of 1,012 employees.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing in the form of the senior loan, risk mitigation due to EBRD's long-term relationship with a client, and knowledge, innovation, and capacity building via technical support, latest technology selector, and targeted investment incentives into a package that promotes residential green economy investments.
Environmental and Social Summary
Categorised FI (2019 ESP). KBS is an existing client and has provided satisfactory Annual E&S Reports to the Bank to date. KBS will be required to implement the environmental and social risk management procedure for micro, SME and corporate loans as well as the specific environmental and social eligibility criteria for renewable energy projects as applicable; continue to comply with the EBRD's Performance Requirements (PRs) 2, 4 and 9 and submit Annual E&S Reports to the Bank.
Technical Cooperation and Grant Financing
Tehincal cooperation (TC): EUR 5.1m for the overall Facility to support the preparation, implementation and monitoring of GEFF-WB. 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 0.2m for investment incentives to sub-borrowers for the implementation of eligible sub-projects in line with the Policy Statement.
Company Contact Information
+389 2316 8283
Orce Nikolov br. 3 P.O.B. 563 1000 Skopje Republic of North Macedonia
PSD last updated
08 Oct 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Independent Project Accountability Mechanism (IPAM)
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