Provision of a senior unsecured loan of up to EUR 2.0 million to be provided in one single tranche to Ohridska Banka Skopje under the Green Economy Financing Facility - Western Balkans (GEFF-WB).
The transaction supports investments in high-performance energy efficiency technologies, materials and solutions undertaken in, or in relation to, privately-owned residential dwellings or buildings ("sub-projects") in North Macedonia. Sub-projects are selected according to technical and financial eligibility criteria set forth in the policy statement for GEFF WB. 100% of the use of proceeds will be related to Green Economy Transition investments.
ETI score: 80
The project contributes to the objectives of GEFF WB, supporting the Green and Competitive TI qualities.
Green: The project will contribute towards building a green economy by facilitating the expansion of residential energy efficiency lending in North Macedonia and positive demonstration effects of green economy projects.
Competitive: The project will contribute towards building a more competitive financial sector through developing the internal capacity of partner financial institutions for financing green economy projects.
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 the necessary long-term financing via OB with TC and investment incentives into a package that promotes residential green economy investments in North Macedonia.
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. As applicable, sub-loans under the GEFF facility will need to comply with the E&S Eligibility Procedures for wind, hydro, solar, geothermal or biomass projects. 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
Tehincal cooperation (TC): EUR 5.1 million have been secured to support the preparation, implementation and monitoring of WB GEFF. OB will share up to 15% of TC costs that benefit them directly through a marketing campaign, same as for the previous GEFF lines. Grant resources are provided by the Republic of Austria and the multi-donor funded Western Balkans Investment Framework to fund TC programme under the GEFF.
Non-TC: EUR 410,500 for investment incentives to sub-borrowers for the implementation of eligible sub-projects in line with the Policy Statement. Grant funds 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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