Provision of a senior unsecured loan of up to RSD 588 million (ca. EUR 5 million equivalent) to be disbursed in one single tranche to ProCredit Bank AD Belgrade (PCB) under the Western Balkans Green Economy Financing Facility II (WB GEFF II).
The facility will support investments in high-performance green technologies, materials and solutions undertaken in privately-owned residential dwellings or buildings. The sub-projects will be selected according to technical and financial eligibility criteria set out in the Policy Statement for WB GEFF II. 100% of proceeds will finance green investments.
ETI score: 80
The project contributes to the objectives of WB GEFF II, supporting the Green and Competitive TI qualities.
Green: The project will contribute towards building a green economy by facilitating the expansion of lending for investments in high performance residential green economy technologies.
Competitive: The project will contribute towards building a more competitive financial sector by increasing the capacity of PFIs for financing green economy projects.
PROCREDIT BANK AD BELGRADE
ProCredit Bank AD Belgrade is a medium-sized development-oriented commercial bank in Serbia specialised in lending to SMEs and agricultural clients. With total assets of EUR 1.48 billion, it ranks as the 12th largest bank in Serbia as of December 2020. PCB is part of ProCredit group, which is led by its Frankfurt-based parent company, Procredit Holding AG & Co. KGaA. As the sole owner of PCB, ProCredit Holding holds 100% of its shares.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing via PCB with TC and investment incentives into a package that promotes residential green economy investments in Serbia. Furthermore, EBRD provides PCB with local currency funding that is scarely available in the local market.
Environmental and Social Summary
Categorised FI (ESP 2019). PCB is an existing client and has provided satisfactory annual E&S Reports to the Bank to date. It is required to continue to comply with PRs 2, 4 & 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the EBRD E&S Exclusion List and submit annual E&S reports to the Bank. Sub-borrowers financed through PCBS's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation and Grant Financing
Up to EUR 2.965 million have been set for technical cooperation at the Facility level to support both partner financial institutions and sub-borrowers (including individuals, housing collectives, suppliers and vendors of green technologies, and service providers). The objective of the technical cooperation is to transfer know-how and raise awareness about investment in modern energy efficiency technologies in the residential building sector to support a green economy transition in the Western Balkans. The TC is essential to supporting the preparation, implementation and monitoring of the Facility. The TC is provided by the Shareholder Special Fund and the Government of Austria.
Company Contact Information
Centrala, Beograd Milutina Milankovica 17 Republic of Serbia
PSD last updated
16 Jun 2021
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