Provision of a senior unsecured loan of up to EUR 2.0m to Procredit Bank Macedonia ("PCBM"), the 6th largest bank in North Macedonia, under the Western Balkans GEFF II Programme (the "programme" or "WB-GEFF II").
The loan is envisaged to provide financing for on-lending to residential sector (individuals, housing collectives, producers, vendors of green technologies, and service providers) for investments supporting Green Economy Transition ("GET") in North Macedonia.
ETI score: 80
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.
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 AD
Founded in 2003, Procredit Bank Macedonia (the "company" or "PCBM") is the 6th largest bank on the Macedonian market with assets of EUR 577m and a market share of 6.0% by total assets, 7.6% by net loans and 5.7% by customer deposits (YE2020). The company is headquartered in Skopje and services the entire territory of North Macedonia through a small network of branches and service centres.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing, in the form of the senior loan, with technical support, targeted investment incentives into a package that promotes residential green economy investments.
Environmental and Social Summary
Categorised FI (2019 ESP). PCBM is an existing client and has provided satisfactory Annual E&S Reports to the Bank to date. PCBM 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 II facility will need to comply with the E&S Eligibility Procedures for wind, hydro, solar, geothermal or biomass projects. In light of the recent reported forced labour concerns in the solar supply chain, solar PV technologies produced by high risk manufacturers will not be eligible for financing under this GEFF Facility until the Bank is satisfied with the integrity of those manufacturers. Any on-lending involving solar PV technologies will undergo screening through use of the Green Technology Selector (GTS) from which suppliers and technologies with reported links to potential forced labour issues have been removed. If a supplier not listed in the GTS is proposed, further assessments of suitability of supply chain risk assessment and mitigation will be required. Where the GTS is used, there is no need to update Loan Agreements and Policy Statements.
Technical Cooperation and Grant Financing
TC: TC funds of up to EUR 2.965 million at the Facility level to support PFIs and sub-borrowers (individuals, housing collectives, suppliers and vendors of green technologies, and service providers) for transfer of know-how and awareness raising about investments in modern energy efficiency technologies in the residential building sector. TC funds for the proposed transaction are sourced from the SSF and the Government of Austria.
Non-TC: GEFF-WB II will also be supported by non-TC funds of up to EUR 9.63 million (for this sub-project amounts up to EUR 409,000) to be provided by the EU through the Western Balkans Investment Framework ("WBIF") for investment incentives payments to sub-borrowers for the implementation of eligible sub-projects in line with the levels and eligibility criteria as set forth in the Policy Statement of the Facility.
Company Contact Information
+389 02 3219 574
ul. Manapo 7, 1000 Skopje, N.Macedonia
PSD last updated
09 Aug 2021
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