FIF - Regional SME CSP - Banka per Biznes II

Location:

Kosovo

Project number:

51813

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

26 Oct 2021

Status:

Approved

PSD disclosed:

26 Oct 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Provision of a senior unsecured loan of up to EUR 5.0mln to be made available in a single tranche to Banka per Biznes ("BpB") under the Regional SME Competitiveness Support Programme ("SME CSP").

Project Objectives

The project will support investments in SMEs to upgrade production facilities and comply with EU Directives in the field of environmental protection, workers' and product safety and product quality. The investments will be selected based on the technical and financial eligibility criteria set out in the Policy Statement for the Regional SME CSP. Support to SMEs is tailored as a combination of access to finance with TC and non-TC assistance. At least 60% of the use of the proceeds will be directed towards financing GET-eligible investments in line with the Policy Statement.

Transition Impact

ETI score: 60

The project contributes to the objectives of the Regional SME-CSP, supporting the competitive and resilient TI qualities.

Competitive: The programme will encourage the competitiveness of SMEs in the Western Balkans, by (i) supporting SMEs in accessing finance towards EU standards investments; and (ii) assisting SMEs to access advice and know-how for introducing and implementing EU standards and becoming competitive. 

Resilient: The project will foster the resilience of SMEs as sub-borrowers will be expected to be commercially viable, which should be achieved given the underwriting expertise and adequate portfolio quality of BpB.

Client Information

BANKA PER BIZNES SHA

Banka per Biznes, Sh.A., is a Tier 2 bank in Kosovo offering a wide range of commercial baking products to all customer segments, with a main focus on micro, SME and retail. BpB, established in 2001, is the 7th largest bank in Kosovo among 11 operating in the market with a market share of 6.5% by total assets and 6.4% by net loans as of 1H2021. EBRD became a shareholder of BpB in 2010 with acquisition of a 10.0% stake with the reminder of shares held by Kosovar businessmen (77.6%), Moneta Sh.p.k (7.8%) and Banka di Cividale (4.6%).

EBRD Finance Summary

EUR 5,000,000.00

Total Project Cost

EUR 5,000,000.00

Additionality

Additionality is achieved by combining necessary medium-term financing with TC and investment incentives into a package that helps unlock the full potential of SMEs in Kosovo and is structured to promote compliance with EU and international standards by improving the supply of dedicated financing and increasing the demand for such investments.

Environmental and Social Summary

Categorised FI (2019 ESP). BpB is an existing client and has provided satisfactory Annual E&S Reports to the Bank to date. BpB will be required to continue to implement the environmental and social risk management procedure for Micro, SME and Corporate loans; continue to comply with the EBRD's Performance Requirements (PRs) 2, 4 and 9, including adherence to the expanded EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit Annual E&S Reports to the Bank.

Technical Cooperation and Grant Financing

TC: The TC will include support from the SME CSP Programme Consultants that will include a Project Consultant assisting with the implementation, marketing and monitoring of the Programme and a separate Verification Consultant that will carry out the verification of the technical implementation of the investments by the Sub-borrowers before the incentive payment is released.

Non-TC: EUR 0.75mln for investment incentives to Sub-borrowers for the implementation of eligible investments in line with the SME CSP Policy Statement. 

The co-investment grant and TC resources are provided by the European Union.

Company Contact Information

Adonis Bllacaku
adonis.bllacaku@bpbbank.com
+383 49 904 804
www.bpbbank.com
Rr. Ukshin Hoti, Nr. 128, Prishtine 10000, Kosove

PSD last updated

26 Oct 2021

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 more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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