Project Description
Provision of a long-term senior unsecured loan of up to EUR 15 million to NLB Komercijalna banka a.d. Beograd ("NLBKBB") for on-lending to small and medium-sized enterprises ("SMEs") in Serbia. The loan is envisaged under the Sustainable Reboot SME Programme ("Reboot SME").
Project Objectives
The loan is intended to provide financing for on-lending to local SMEs for investments in environmental protection, workers' safety and product quality and safety in order to introduce and implement EU and other international quality standards, which will boost SMEs' competitiveness in the country. At least 70% of the use of the proceeds is expected to be related to Green Economy Transition ("GET") investments.
Transition Impact
ETI score: 60
The project supports the Competitive and Green TI qualities.
The Competitive quality will be supported by: (i) facilitating SMEs' increased competitiveness; and (ii) prioritising investments that result in compliance with EU Directives and other relevant international standards. The project will also facilitate investments in green technologies that will drive the transition to an environmentally sustainable, lower-carbon and climate-resilient green economy, thus supporting the Green quality.
Client Information
NLB KOMERCIJALNA BANKA AD BEOGRAD
As at 1H22 NLBKBB had assets of c. EUR 4.6bn with a loan book of c. EUR 2.5bn and deposits of c. EUR 3.7bn. It is the third largest bank in the sector with a c. 10.7% market share by assets, covering both retail and corporate banking segments, predominately funded through retail deposits with more than one million active clients, countrywide network of 186 branches and around 2,700 employees. It is owned 100% by NLB Slovenia d.d.
EBRD Finance Summary
EUR 15,000,000.00
Total Project Cost
EUR 15,000,000.00
Additionality
Combining the necessary long-term financing with technical support and targeted investment incentives into a package that promotes green investments that will improve the competitiveness of SMEs.
Environmental and Social Summary
Category FI (2019 ESP). The client had a long relationship with EBRD up to 2019, and during that earlier engagement had developed an ESMS which met the standards required by the Bank. The client has already completed an updated EHSS due diligence questionnaire which shows that they have maintained this risk management infrastructure. The proposed transaction will require the client to comply with PR2 and PR 4 for their internal operations and apply the Bank's EHSS Procedures for Corporate, SME and Microlending to the investment activity associated with the Bank's funds. As this proposed transaction will be covered by the 2019 ESP, the client will have to utilise the updated E&S Exclusion List in that policy and also apply the Referral List included with PR9.
Technical Cooperation and Grant Financing
The project will be supported by a comprehensive technical assistance to NLBKBB and sub-borrowers to facilitate the project preparation and successful implementation of the Reboot SME programme.
The SMEs will also benefit from grant incentives worth up to 15 per cent of the loan amount. The grants will be funded by Luxembourg, Norway and the United States of America, and other donors are expected to participate.
Company Contact Information
Marko Petrovic
marko.petrovic@nlbkb.rs
+381113339062
www.nlbkb.rs
Trg Politike 1, Belgrade, Serbia
PSD last updated
27 Oct 2022
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.
