Provision of a long-term senior unsecured loan of up to EUR 7 million to be provided in two equal tranches for on-lending to small and medium-sized enterprises ("SMEs") in North Macedonia for investments in renewable energy ("RE") and energy efficiency ("EE"). The loan comes as the pilot project under the Green Finance Facility - North Macedonia (the "GFF", the "Facility"), established in partnership with UNDP, with contributions from the Joint SDG Fund and the government of North Macedonia.
The loan aims to support green economy investments in eligible RE and EE measures under the Bank's Green Economy Transition ("GET") approach. The project will build on the momentum created to date and it will focus on the competitiveness and climate resilience of SMEs in North Macedonia.
ETI score: 65
The project will contribute to the overall Facility objectives and support the Green and Competitive TI qualities. The proposed project will contribute to the Green TI quality as primary quality by helping address the high energy and carbon intensity of the private sector in North Macedonia by allocating 100% of the Bank's investment to the Green Economy Transition of the country. Furthermore, with its secondary TI quality Competitive, the project will build towards a more competitive financial sector by building the capacity of the PFI for financing green investments, while also increasing the competitiveness of SMEs in North Macedonia by shifting towards RE and EE technologies in their operations.
SPARKASSE BANK MACEDONIJA AD SKOPJE
Sparkasse Bank AD Skopje ("SBS") is a universal commercial bank and the 4th largest bank in North Macedonia, with 12.7% market share by total assets. It is 96.6% owned by Steiermarkische Bank und Sparkassen AG, Austria, which also acquired Ohridska Banka ("OB", another client of the Bank) from Societe Generale and merged it into SBS in July 2021. It is considered a systemically important bank by the National Bank of the Republic of North Macedonia.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by 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
Categorised FI (ESP 2019). SBM is an existing client and its performance to date for existing exposures has been satisfactory. SBM will be required to continue to comply with PRs 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans 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. Sub-borrowers financed through SBM's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements. As applicable, sub-loans under the GEFF III facility will need to comply with the E&S Eligibility Procedures for wind, hydro, solar, geothermal or biomass projects. In light of the recent reported forced labour concerns in the solar supply chain, solar PV technologies produced by high risk manufacturers will not be eligible for financing under this GEFF Facility until the Bank is satisfied with the integrity of those manufacturers. Any on-lending involving solar PV technologies will undergo screening through use of the Green Technology Selector ("GTS") from which suppliers and technologies with reported links to potential forced labour issues have been removed. If a supplier not listed in the GTS is proposed, further assessments of suitability of supply chain risk assessment and mitigation will be required.
Technical Cooperation and Grant Financing
The project will be supported by a comprehensive technical assistance to SBS and sub-borrowers to facilitate the project preparation and successful implementation of the GFF facility. The source for TC funds is the Joint SDG Fund via the United Nations Development Programme ("UNDP"). The package also includes a grant component in the form of investment incentives funded by the Joint SDG Fund (via UNDP) and the Government of North Macedonia.
Company Contact Information
Milka Ratajkoska - Joleska
+389 2 3167714
Vasil Iljoski 14, 1000 Skopje, Republic of North Macedonia
PSD last updated
09 May 2023
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