FIF- Regional SME CSP - Sparkasse Bank

Location:

Bosnia and Herzegovina

Project number:

52354

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

08 Sep 2020

Status:

Disbursing

PSD disclosed:

09 Oct 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

This project was approved in the context of the Bank's response to the COVID-19 pandemic.  To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information.  Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

Provision of a senior unsecured loan of up to EUR 5m (the "loan") for on-lending to local SMEs through the Regional SME Competitiveness Support Programme (SME-CSP). The loan will be fully guaranteed by Steiermarkische Bank und Sparkassen AG.

Project Objectives

The project will support investments in SMEs to upgrade production facilities and comply with various 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 forth in the Policy Statement for the Western Balkans SME Competitiveness Support Programme (CSP WB). Support to the SMEs is tailored as a combination of access to finance with TC and non-TC assistance. At least 60% of the use of proceeds will go towards financing GET-eligible investments in with the Policy Statement.

Transition Impact

ETI score: 60

The project contributes to the objectives of the FIF, supporting transition qualities:

1) Competitive: The project supports SPK lending to private SMEs in BiH, where the gaps are large, by a multiple of EBRD's funding. The project focuses on regional outreach and attraction of new SME clients.

2) Resilient: SPK will be expected to maintain adequate portfolio quality.

Client Information

SPARKASSE BANK DD

Sparkasse Bank d.d. is the sixth largest lender in Bosnia and Herzegovina by assets (4.9% market share) and fifth by loan portfolio (5.4% market share) as of end-2019. The bank offers universal banking services to corporate, SMEs and individual clients through a network of 40 branches and outlets managed by the head office in Sarajevo and served by 530 employees. Sparkasse Bank d.d. is 100% owned by Steiermarkische Bank und Sparkassen AG, Austria.

EBRD Finance Summary

EUR 5,000,000.00

Total Project Cost

EUR 5,000,000.00

Additionality

COVID-19 crisis response: EBRD financing effectively bridges a financing gap due to adverse market conditions. EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client.

Environmental and Social Summary

Categorised FI (ESP 2019). SBK is an existing client and its performance to date for existing exposures has been satisfactory. The AESR for 2019 will need to be reviewed by ESD prior to signing to confirm compliance. SBK will be required to continue to comply with  PRs 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans 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. Sub-borrowers financed through SBK's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.

Technical Cooperation and Grant Financing

TC: The TC will include support for Programme Consultants that will assist with the implementation, marketing and monitoring of the Programme and a separate verification of the technical implementation of the investments by the Sub-borrowers before the incentive payment is released.  

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

Company Contact Information

Nesim Murtic, Head of Treasury Division
nesim.murtic@sparkasse.ba
+387 (0) 33 280 328
+387 (0) 33 280 237
www.sparkasse.ba
Zmaja od Bosne 7, 71000 Sarajevo, Bosnia and Herzegovina

PSD last updated

09 Oct 2020

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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