Provision of a long-term senior unsecured loan of up to EUR 5 million to Erste Bank AD Novi Sad (EBS) for on-lending to small and medium enterprises (SMEs) in Serbia. The loan is envisaged under the Regional SME Competitiveness Support Programme ("SME-CSP").
The loan is envisaged to provide financing for on-lending to local SMEs for investments in environmental protection, workers' safety and product quality and safety in order to introduce and implement EU standards, which will boost local SMEs' competitiveness. At least 60 per cent of the use of the proceeds is expected to be related to Green Economy Transition ("GET") investments.
ETI score: 60
The project aims at enhancing the competitiveness of SMEs in Serba 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.
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 part of Europe in terms of clients and total assets. EBS is a systematically-important bank in Serbia according to the Central Bank classification.
EBRD Finance Summary
Total Project Cost
Combining the necessary long-term financing with technical support and targeted investment incentives into a package that promotes investments that will improve the competitiveness of SMEs.
Environmental and Social Summary
Categorised FI (ESP 2019). 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 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 EBS's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements. 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 Regional SME-CSP Programme. The technical assistance is funded by the European Union
Company Contact Information
+381 (0)21 489-0621
Milutina Milankovica 3a 11070 Novi Beograd
PSD last updated
17 Feb 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Independent Project Accountability Mechanism (IPAM)
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