FIF - Regional SME CSP - OTPL Serbia

Location:

Serbia

Project number:

52833

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

28 Sep 2021

Status:

Approved

PSD disclosed:

30 Sep 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Provision of a senior loan of up to EUR 10 million in two equal tranches to OTP Leasing Serbia (the "company" or "OTPL") under the Regional SME Competitiveness Support Programme ("CSP"). The loan will be fully guaranteed by the parent, OTP Bank Serbia ("OTP").

Project Objectives

The project will support investments by small- and medium-sized enterprises (SMEs) to upgrade production facilities and comply with EU Directives in environmental protection, workers' and product safety and product quality. The investments will be selected on the basis of technical and financial eligibility criteria set forth in the Policy Statement for the Western Balkans SME Competitiveness Support Programme (CSP WB). 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 go towards financing GET-eligible investments in line with the Policy Statement.

Transition Impact

ETI score: 60

The project contributes to the objectives of the Regional SME-CSP, supporting the competitive and resilient TI qualities.

Competitive: The project will contribute to: (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: Sub-borrowers will be expected to be commercially viable, which will be reflected in the expected strong underwriting expertise and adequate portfolio quality of the PFIs.

Client Information

OTP LEASING SRBIJA DOO

OTP Leasing is one of the leading leasing companies in Serbia and a fully-owned subsidiary of OTP Bank Serbia (which in turn is fully-owned by OTP Bank Nyrt Hungary). OTP Leasing provides financial leases for a full suite of assets ranging from freight vehicles, minibuses and buses to passenger vehicles, construction machines and agricultural equipment. The company operates via two branch offices in Serbia with 58 employees and has active local and international partnerships with vendors and agents in all business areas.

EBRD Finance Summary

EUR 10,000,000.00

Total Project Cost

EUR 10,000,000.00

Additionality

Additionality is achieved by combining the necessary long-term financing, in the form of the senior loan, with technical support and targeted invesment incentives into a package that promotes investments that will improve the competitivness of the local SMEs.

Environmental and Social Summary

Categorised FI (2019 ESP). OTPL currently operates as a former Societe Generale Leasing, which was an existing client and its performance to date for existing exposures has been satisfactory. OTPL will be required to comply with EBRD's PRs 2, 4 and 9, including the expanded Exclusion List and FI Referral List for any sub-projects that include activities listed in Appendix A to PR 9 and implement the EBRD's E&S Risk Management Procedures for Leasing and submit annual E&S reports to the Bank. Sub-borrowers financed through OTPL's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements. The overall risk portfolio of the investments foreseen under this facility is low to medium risk. Due to the organisational changes, OTPL's Environmental and Social Management System will need to be re-established following OTP Group Policies and EBRD will be working with OTPL to put appropriate procedures in place to manage its investments.

Technical Cooperation and Grant Financing

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 1.5 million for investment incentives to Sub-borrowers for the implementation of eligible investments in line with the CSP Policy Statement.

Company Contact Information

Nadja Kostic
nadja.kostic@otpsrbija.rs
381 11 222 1361
www.otpleasingsrbija.rs
Bulevar Zorana Djindjica 50a/b, Novi Beograd, Srbija

PSD last updated

30 Sep 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

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).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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