Provision of a senior unsecured loan to OTP Bank Serbia ("OTP"), in the amount of up to EUR 10 million, for on-lending to micro, small and medium enterprises in Serbia. The loan is envisaged under the Financial Intermediaries Framework ("FIF").
Proceeds of the Loan will be used for providing sub-loans to eligible SMEs in Serbia for improving their competitiveness and trade potential via targeted investments in sustainability practices and the adoption of internationally recognised quality standards, scaling up green economy investments and in particular, greening of agribusiness supply chains and promoting more equitable access to climate and other finance to women-led SMEs. The bank will aim to deliver at least 70% of the proceeds to Green Economy Transition (GET) eligible projects.
ETI score: 65
The Project contributes to the overall objectives of the SME Go Green Programme, supporting the Competitive and Green TI qualities. FIF SME Go Green seeks to (i) support SMEs in accessing finance towards EU and international standards investments and assist them to access advice and know-how for introducing and implementing such standards and becoming competitive, and (ii) scale up investments into GET-eligible technologies by SMEs and thereby contribute to building a green, low-carbon economy in the Western Balkans.
OTP BANKA SRBIJA AD
OTP is a systemic bank in Serbia. OTP is the second largest bank in Serbia with 13.7% market share by total assets, 16.6% market share by net customer loans (ranked as the largest bank by net customer loans), and 11.7% market share by deposits, as of June 2023. The bank operates through a network of 155 branches country-wide and has around 2,700 employees as of YE22. OTP is fully owned by OTP Bank Nyrt (Hungary), one of the largest financial groups in Europe with an investment grade rating.
EBRD Finance Summary
Total Project Cost
EBRD offers long-term financing which is above the market average and provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives.
Environmental and Social Summary
Categorised FI (2019 ESP). OTP was on boarded in December 2021 (FIF SME i 52379) and previously operated as Societe Generale Serbia, which was an existing client (last exposure repaid as of Q1 2020). OTP was required to provide clarifications and update on addressing covenants for FIF SME 52379. OTP demonstrated through the AESR (May 2023) that they have an ESG strategy in place and have assigned appropriate E&S resources, undertook the EBRD FI eLearing training, developed an ESMS and adopted the EBRD E&S procedures for appraising and monitoring sub-projects. OTP thus complied with the Bank's requirements and will continue to comply with PRs 2, 4 and 9, including the expanded Exclusion List and FI Referral List and report yearly to the Bank.
Technical Cooperation and Grant Financing
Technical Cooperation (TC) includes support from Programme Consultants that will assist OTP and SMEs with the implementation, marketing and monitoring of the Programme and a separate verification of the technical implementation of the investments by Sub-borrowers before the incentive payment is released. The source for TC funds is EU.
Company Contact Information
+381 11 30 11 496
Bulevar Zorana Djindjica 50 a/b, Novi Beograd, Serbia
PSD last updated
17 Aug 2023
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
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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.
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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).
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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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.