Provision of a senior loan of up to EUR 10 million to Intesa Sanpaolo Banka d.d. BiH ("ISP BiH") for on-lending to eligible private individuals for housing purposes. The facility will contribute to the development of the local financial sector, mainly its mortgage lending segment, and to the improvement of housing conditions of private individuals.
The proceeds of the loan will be used by ISP BiH to provide long-term financing for residential mortgage lending in Bosnia and Herzegovina.
ETI score: 60
Transition impact is expected to derive from (i) the expansion of the mortgage market in Bosnia and Herzegovina; (ii) working together with authorities on the introduction of macro prudential standards for mortgage lending and; (iii) ISP BiH's application of strong underwriting standards on the sub-loan portfolio.
INTESA SANPAOLO BANKA DD BOSNIA AND HERZEGOVINA
ISP BiH is the third largest bank in Bosnia and Herzegovina with assets of EUR 1,193.5 million and market shares of 7.2% by total assets, 8.0% by customer loans and 7.0% by customer deposits as of YE 2019. The company is headquartered in Sarajevo and services the entire territory of Bosnia and Herzegovina through electronic channels and a network of 48 branches. At YE 2019, the bank had 556 employees.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining long-term financing which is not available in the market from commercial sources on reasonable terms and by providing risk mitigation to support lending for housing during the current Covid-19 crisis.
Environmental and Social Summary
Categorised FI (ESP 2019). ISP BiH is an existing client and has provided satisfactory annual E&S Reports to the Bank to date. The 2019 AESR will be reviewed prior to FRM to confirm compliance. ISP BiH is required to continue to comply with PRs 2, 4 & 9, implement the EBRD's E&S Risk Management Procedures for Mortgage Lending 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 ISP BiH's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation and Grant Financing
Company Contact Information
+387 33 49 77 11
+387 33 49 78 18
Obala Kulina bana 9a 71000 Sarajevo Bosna i Hercegovina
PSD last updated
22 Oct 2020
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