Provision of a senior unsecured loan of up to EUR 3.0m to ProCredit Bank Albania ("PCBA") under the Regional SME Competitiveness Support Programme ("CSP").
The Loan is envisaged to provide financing for on-lending to local SMEs for investments to upgrade production facilities and comply with various EU Directives in the field of environmental protection, workers' safety and product quality and safety and become competitive. 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 proceeds will go towards financing GET-eligible investments.
ETI score: 60
The project contributes to the objectives of the Regional SME-CSP, supporting the Competitive and Resilient TI qualities.
The Programme will be encouraging the competitiveness of SMEs in Albania, by (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.
The Programme fosters the resilience of SMEs as 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.
PROCREDIT BANK ALBANIA SHA
PCBA, a subsidiary of ProCredit Holding, is a universal, SME-oriented bank. PCBA focuses on SME lending, green finance and digitalisation.
EBRD Finance Summary
Total Project Cost
Additionality derives from (i) the financing structure addressing the much needed term financing, and (ii) the higher standard-setting through EBRD expertise and TC work on higher financial and EU standards.
Environmental and Social Summary
Categorised FI (ESP 2019). PCBA is an existing client previously with a risk sharing facility for agribusiness support and currently supported through the Resilience Framework. PCBA will be required to continue to comply with Performance Requirements 2, 4 and 9 and submit annual environmental and social reports to the Bank. PCBA will be required to apply the EBRD's Environmental and Social Risk Management Procedures for Corporate, SME and Micro Loans and the extended E&S Exclusion list and new Referral list introduced with ESP 2019. GET-eligible sub-projects will be required to be in compliance with the national environmental, social, labour, health and safety legislation. The GET share for the project is 60%.
Technical Cooperation and Grant Financing
TC: The Technical Cooperation Support 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.
Non-TC: EUR 0.45 million of non-TC Grant funds will be used to finance investment incentives to Sub-borrowers according to the Policy Statement for Regional SME-CSP.
The TC and the non TC resources are provided by the European Union.
Company Contact Information
+355 42 389 389
ProCredit Bank Albania Dritan Hoxha Nd.92, H15 Njesia Bashkiake Nr.11,Tirana, ZIP Code 1026
PSD last updated
27 Jun 2022
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Independent Project Accountability Mechanism (IPAM)
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