Provision of a long-term senior unsecured loan to Eurobank Serbia ("EBS" or the "Company") up to RSD 2.9bn (ca. EUR 24.7m) under the Financial Intermediaries Framework ("FIF") for on lending to micro, small and medium-sized enterprises.
The project will contribute to the expansion of lending to private businesses through working capital lines and investment loans to SMEs, including enterprises operating in economically less-developed regions of the country. Furthermore, the transaction supports EBS's growth strategy and provides a source of medium term local currency funding.
ETI score: 60
The project contributes to the objectives of the Financial Intermediary Framework, supporting the Competitive and Resilient transition qualities. The project improves the availability of medium-term funding for SMEs, which are the main source of employment in the private sector and a major contributor to the economy. The project focuses on regional outreach and attraction of new SME clients. As an existing client under the FIF programme with well developed nation wide branch network, EBS is a strong partner to reach SMEs in Serbia. The focus will also be on lending in the regions outside the capital, attracting new SME clients and maintaining adequate portfolio quality.
EUROBANK AD BEOGRAD
Eurobank Serbia ("EBS") is the 10th largest private bank in Serbia in terms of assets with a balance sheet of EUR 1.6bn and a market share of 4.2%. It is a universal bank with business lines split 50-50% between corporate and retail. It is ultimately 100% owned by the Eurobank Ergasias Group ("Eurobank Group" or "Group" or "EBG"). The bank has 80 branches covering the entire territory of the country and 1,483 employees.
EBRD Finance Summary
Total Project Cost
EBRD provides EBS with both local currency and medium term funding. Euroisation of the Serbian banking sector is high with EUR loans making up 68% of the banking sector gross loan portfolio and EUR deposits making up 59% of total deposits at YE 2019. This will support the strengthening of the bank's balance sheet, via decreased maturity mismatch and will ensure availability of local currency to SME clients. Moreover, 62.1% of EBS's deposits are short-term. The banks in Serbia are largely funded by short-term deposits (ca. 70% of total liabilities).
EBS will be following and enforcing clearly defined eligibility criteria for sub-borrowers, EBRD environmental and social standards, higher financial covenants and reporting requirements, thus contributing to the competitiveness and resilience of the financial sector as intended under the FIF Framework.
Environmental and Social Summary
Categorised FI (2019 ESP). EBS is an existing client and will be required to continue to implement the Environmental and Social Risk Management Procedures. EBS is also required to 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.
Technical Cooperation and Grant Financing
Company Contact Information
Vuka Karadzica 10, 11000 Beograd, Srbija
PSD last updated
14 Apr 2021
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.