Ptovision of up a senior unsecured loan of up to to RSD 1.2 billion to Erste Bank Serbia ("EBS") for on-lending to the residential sector in Serbia. The loan will enable EBS to continue extending financing to the residential sector and promote green economy investments in the country. The loan is envisaged under the Western Balkans Green Economy Financing Facility II ("WB GEFF II").
The loan will support investments in high-performance green technologies, materials and solutions undertaken in privately-owned residential dwellings or buildings. 100 per cent of the use of the proceeds will be related to Green Economy Transition ("GET") investments.
The project will contribute towards the building of a green economy by facilitating the expansion of lending for investments into high performance residential green economy technologies (Green) and towards building a more competitive financial sector in Serbia by building the capacity of banks for financing green economy projects (Competitive).
ERSTE BANK AD NOVI SAD
EBS is a dynamic bank focused on operations with retail clients, municipalities and small and medium-sized enterprises with an experienced management team and consistently strong performance. The bank has a market share of 6 per cent and is ranked 6th by total assets among 26 banks operating in Serbia. It is a subsidiary of Erste Group, an Austria-based banking group with a 200-year tradition, one of the largest financial services providers in the Central Eastern and South Eastern regions of Europe in terms of clients and total assets. EBS is a systematically-important bank in Serbia according to Central Bank classification
EBRD Finance Summary
Total Project Cost
Innovative financing structure - EBRD offers an innovative green finance instrument that integrates various aspects such as climate and environmental, social and governance (ESG) standards imto the financing structure. Furthermore, EBRD offers local currency financing on terms not readily available on the market.
Environmental and Social Summary
Categorised FI (2019 ESP). EBS is an existing client and its performance to date for existing exposures has been satisfactory. EBS will be required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9; implement the applicable EBRD's E&S Risk Management Procedure for Micro, SME and Corporate Lending and comply, as applicable, with the E&S Eligibility Procedures for wind, hydro, solar, geothermal or biomass projects. EBS will need to submit Annual Environmental and Social Reports to the Bank. The overall risk portfolio of the investments foreseen under this facility is low to medium risk, and EBS has appropriate procedures in place to manage such investments.
Technical Cooperation and Grant Financing
The project will be supported by a comprehensive technical assistance to EBS and sub-borrowers to facilitate the project preparation and successful implementation of the WB GEFF II programme.
Company Contact Information
+381 (0)21 489-0621
Milutina Milankovica 3a 11070 Novi Beograd
PSD last updated
17 Feb 2021
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