Provision of a senior unsecured loan of up to EUR 4.0 million to be made available in one single tranche to Ohridska Banka Skopje under the Regional SME Competitiveness Support Programme ("SME CSP").
The project will support investments in SMEs to upgrade production facilities and comply with 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 Regional SME CSP. Support to SMEs is tailored as a combination of access to finance with TC and non-TC assistance. At least 60% of the use of the proceeds will be directed towards financing GET-eligible investments in line with the Policy Statement.
ETI score: 60
The project contributes to the objectives of the Regional SME-CSP, supporting the competitive and resilient TI qualities.
Competitive: The programme will encourage the competitiveness of SMEs in the Western Balkans, 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.
Resilient: The project will foster the resilience of SMEs as sub-borrowers will be expected to be commercially viable, which should be achieved given the underwriting expertise and adequate portfolio quality of OB.
OHRIDSKA BANKA AD
Ohridska Banka ("OB") is currently the 5th largest bank in North Macedonia. Previously a subsidiary of Societe Generale, OB was acquired by Steiermarkische Sparkasse in November 2019 and is expected to merge with Sparkasse Bank Macedonija in the summer of 2021. After the merger, the new combined entity will be the fourth largest bank, with a market share of 12%.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining necessary long-term financing with TC and investment incentives into a package that helps unlock the full potential of SMEs in North Macedonia and is structured to promote compliance with EU and international standards by improving the supply of dedicated financing and increasing the demand for such investments.
Environmental and Social Summary
Categorised FI (2019 ESP). OB is an existing client and has provided satisfactory Annual E&S Reports to the Bank to date. OB will be required to continue to implement the environmental and social risk management procedure for Micro, SME and Corporate loans; continue to comply with the EBRD's Performance Requirements (PRs) 2, 4 and 9, 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. Ohridska will need to establish adequate E&S risk management capacity by hiring a duly qualified E&S specialist and participating in EBRD's E&S training as available.
Technical Cooperation and Grant Financing
TC: 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.
Co-investment grants: EUR 600,000 for incentives to Sub-borrowers for implementation of eligible investments in line with CSP WB Policy Statement.
The resources are provided by the European Union.
Company Contact Information
+ 389 2 15050
Orce Nikolov 54, 1000 Skopje, North Macedonia
PSD last updated
25 Mar 2021
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