Provision of a senior unsecured loan of up to EUR 2.0 million to be provided in two tranches (a first tranche of EUR 1.0 million and a second tranche of EUR 1.0 million) under the Western Balkans Green Economy Financing Facility II. The second tranche will be uncommitted and its commitment will be in the EBRD's sole discretion. The loan will be fully guaranteed by ProCredit Holding AG & Co. KGaA, the sole shareholder of ProCredit Bank dd BiH.
This project will contribute to the objectives of WB GEFF II, supporting the Green and Competitive transition qualities.
ETI score: 80
The project contributes to the overall objectives of Western Balkans GEFF II (BDS20-183), supporting the Green and Competitive TI qualities. The TI benchmarks will therefore be monitored and assessed at the Framework level. Green: The project will contribute towards building a green economy by facilitating the expansion of lending for investments into high performance residential green economy technologies. The allocation to New Dwelling Window will be capped at 30% of Facility. Competitive: The project will contribute towards building a more competitive financial sector by building the capacity of the PFIs for financing green economy projects.
PROCREDIT BANK DD
ProCredit Bank dd BiH ("PCBiH") is an SME oriented commercial bank in Bosnia and Herzegovina with 1.9% market share in terms of assets, 2.2% market share in terms of gross loans and 1.3% in terms of deposits as of 31 Dec 2020.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing via PCBiH with TC and investment incentives into a package that promotes residential green economy investments in Bosnia and Herzegovina.
Environmental and Social Summary
Categorised FI (ESP 2019): PCBiH is a new client and will be required to comply with PRs 2, 4 & 9, and further, implement and comply with EBRD's Environmental & Social (E&S) Procedure for Micro, SME and Corporate Lending. The environmental and social (E&S) due diligence was undertaken by ESD based on the review of the E&S due diligence questionnaire. PCBiH was found in compliance with PRs 2, 4 and 9. The client benefits from strong corporate policies of ProCredit Germany and has adequate capacity and procedures in place to appropriately screen, manage and monitor EBRD's use of proceeds for this transaction, which targets sustainable buildings. The client will be required to submit annual environmental and social reports to the Bank. This transaction is 100% GET.
Technical Cooperation and Grant Financing
A. TC: EUR 2.965m is set for TC support at Facility level. EUR 1 million has been sourced from SSF and the remainder will be sourced the government of Austria. Client contributions will be sought in line with the Arrangements for Cost Sharing Between Donors and Clients and Policy Review (the BDS14-024F) and guidelines. Exact amount to be defined during project implementation.
B. Non-TC: Up to EUR 409,000 is sourced from the European Union level for investment incentives to sub-borrowers for the implementation of eligible sub-projects in line with the Policy Statement.
Company Contact Information
Franca Lehara bb, 71000 Sarajevo, Bosnia and Herzegovina
PSD last updated
09 Jun 2021
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