Provision of a EUR 20 million senior secured long-term loan to Bingo d.o.o. (the "Company"), the leading retail chain in Bosnia and Herzegovina, for development of Sarajevo shopping centre and future capital investments.
The loan in the amount of EUR 20m will be used for:
- development of Sarajevo shopping centre (EUR 10 million committed tranche);
- future investments in the retail network (EUR 10 million uncommitted tranche).
ETI score: 62
The project will help the Company to obtain BREEAM certification of its new Sarajevo shopping centre, resulting in improvements in energy efficiency and contributing to "Green" quality, as well as support the expansion of the Company's retail network and enable additional products penetration mostly in major urban centres, contributing to "Competitive" quality.
EBRD Finance Summary
Total Project Cost
The Company will make use of EBRD expertise over energy and resource efficiency and obtain BREEAM certification of Sarajevo shopping centre, benefit from mitigation of non-financial risks and EBRD's ability to absorb additional risks where other financiers reached their limit.
Environmental and Social Summary
Categorised B (2019 ESP). Bingo is an existing client of the Bank, has been the subject of environmental and social due diligence in the context of previous project. Performance on E&S issues to date has been satisfactory as evidenced by annual environmental and social reporting. The new project will not result in any significant E&S impacts which cannot be managed through existing E&S management systems. The action plan to achieve BREEAM Green Building certification is noted as is the planning for the identification of additional green investments. The operation of retail outlets in general is not associated with significant environmental impacts. Bingo has a process in place to ensure that sites are fit-for-purpose and that planning issues are managed in compliance with national requirements and the Bank's Performance Requirements. Bingo communicates with local communities both prior to construction of retail units and as part of on-going dialogue during both construction and operation. Bingo has a process for engaging with suppliers to ensure that products meet the required quality standards. Bingo also ensures that all HR issues are dealt with in accordance with national requirements including a comprehensive process for engagement with employees for both the continued improvement of working conditions and the receipt of grievances where relevant. Together with 6 local companies, Bingo d.o.o. Tuzla has founded a non-for-profit company which is an authorised Operator within the Federation of Bosnia and Herzegovina for packaging waste management. Eko zivot d.o.o. Tuzla is active in ecological projects and as an intermediary in socially responsible projects which have an objective of improving the environment. The goal of Eko zivot is that its activities will meet the legal obligations associated with packaging and packaging waste management. Its strategic standpoint is that packaging and packaging waste management activities and procedures are based on the experience gained within the EU, and these activities include gathering, sorting, returning, using and recycling of packaging and packaging waste. In the context of the new project with the Company, Bingo will be required to continue complying with the Bank's PRs and to provide the Bank with annual environmental and social reports.
Technical Cooperation and Grant Financing
Technical Cooperation (TC) support has been provided by the Republic of Austria under the Delivering Resource Efficiency Investments (DRIVE) Fund. The TC supported the preparation of the Company for BREEAM Green Building certification (EUR 29,097; the Company will participate with 20% in total costs) and will support the Company in the identification of green investments opportunities (up to EUR 45,903; the Company will participate with 20% in total costs).
Company Contact Information
Ana Tomic Osmanovic
+387 61 234 489
Bosanska poljana bb 75000 Tuzla Bosna i Hercegovina
PSD last updated
23 Aug 2021
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