Provision of a senior unsecured loan of up to EUR 3 million to be provided in two tranches (a first tranche of EUR 2 million and a second, uncommitted, tranche of EUR 1 million) under the Financial Intermediaries Framework ("FIF"). The loan will have a 3-year tenor, consisting of up to 1 year of grace period and 2 years for principal repayment.
The proceeds of the Bank's investment will be used to provide long-term funding to eligible MSMEs in Kosovo; the loan will support expansion of KRK's MSME lending and extend the maturity of the entity's liabilities.
ETI score: 60
Competitive: The project supports KRK lending to private SMEs in Kosovo, where the gaps are Large, by a multiple of EBRD's funding. The project focuses on regional outreach and attraction of new SME clients.
Resilient: the project aims to ensure prudent lending practices and adequate portfolio quality.
KREDITIMI RURAL I KOSOVES LLC
Kreditimi Rural i Kosoves, LLC ("KRK") is the third largest microfinance institution ("MFI") in Kosovo by gross loans and the only MFI currently organized as a limited liability company. Operating since 2000, KRK provides access to finance to low-income individuals in rural and urban areas of Kosovo, prioritizing the agricultural sector. KRK has a network of 26 branches across the country and 244 employees as of YE 2019. KRK has a strong shareholder base comprised of EFSE (42.2%), FMO (29.2%), SIDI (17.4%), and Credit Cooperatif (11.2%). Existing Exposure as of February 2020: EUR 2.4m.
EBRD Finance Summary
Total Project Cost
- Financing structure: the EBRD loan will provide much-needed term financing will help address issues of limited availability of medium- to long-term financing for non-deposit taking institutions in Kosovo.
- Standard-setting: KRK will be required to comply with EBRD's Performance Requirements for FIs. All Sub-projects and Sub-borrowers will be required to comply with the eligibility criteria defined in the Policy Statement of FIF.
Environmental and Social Summary
Categorised FI (ESP 2019). KRK is an existing client and is in compliance with PRs 2, 4 and 9, verified by reviewing the latest SI report for 2018. KRK will be required to continue to comply with the EBRD's Environmental and Social Risk Management Procedures for Micro, SME and Corporate Loans, as well as the applicable PRs, and submit annual E&S reports to the Bank.
Technical Cooperation and Grant Financing
Company Contact Information
PSD last updated
14 Feb 2020
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