AASF-Procredit Bank Albania Risk Sharing Facility

Location:

Albania

Project number:

48326

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

20 Jul 2016

Status:

Signed

PSD disclosed:

17 Jun 2016

Translated version of this PSD: Albanian

Project Description

The EBRD is providing an unfunded risk sharing facility of up to EUR 15 million to ProCredit Bank Albania (PCBA), covering up to 50% of a portfolio of eligible loans to the agribusiness sector in Albania. The proposed Project is the first unfunded risk sharing transaction under the Albania Agribusiness Support Facility (AASF). The Project wll benefit from a First Loss Risk Cover (FLRC), contributed by the Government of Albania, and technical assistance to: (i) PCBA, for capacity building in lending to agrbusinesses, and (ii) PCBA's existing and potential agribusiness clients for advisory services.

Project Objectives

The overall objective of the Project is to promote and enhance access to finance for agribusinesses in Albania by addressing the financing gap as one of the main challenges for the sector's development.

Transition Impact

Transition impact will derive from market expansion by increasing lending to farmers and agribusinesses, and transfer of skills by providing capacity building and marketing outreach support to PCBA and advisory services to PCBA's existing and potential agribusiness clients.

Client Information

PROCREDIT BANK (ALBANIA) SH. A

ProCredit Bank Albania is the 10th largest bank in Albania with a leading position in lending to SMEs and agricultural clients. With total assets of EUR 242m as of 31 March 2016 it accounts for 2.5% of banking assets in Albania. ProCredit Bank Albania is a member of the ProCredit Group, which is led by its Frankfurt-based parent company, ProCredit Holding. As the sole owner of ProCredit Bank Albania, ProCredit Holding holds 100% of PCBA shares.

EBRD Finance Summary

EUR 15,000,000.00

Up to EUR 15 million.

Total Project Cost

EUR 30,000,000.00

Up to EUR 30 million.

Environmental and Social Summary

Categorised FI under the EBRD's Environmental and Social Policy 2014. The participating financial institutions under the Agribusiness Support Facility will be required to adopt and implement EBRD's Environmental and Social Risk Management Procedures in line with Performance Requirements (PRs) 2, 4 and 9 and submit Annual Environmental and Social Reports to the Bank on the implementation of the E&S Procedures and the PRs.

Technical Cooperation

The Project will be accompanied by a comprehensive technical cooperation package to provide support to PCBA for capacity building and marketing outreach. In addition, Advisory services to the sub borrowers will be provided by the Advice for Small Business Team with the aim of facilitating access to know-how and non-financial-development services to agribusiness SMEs in areas ranging from strategy, operations to quality management specific to the agribusiness sector.

Finally, the package includes an assessment of any potential Agribusiness sector bottlenecks hindering access to finance and potential follow-on capacity development activities.

Company Contact Information

ProCredit Bank Albania
informacion@procredit-group.com
00355 42 389 389
www.procreditbank.com.al
Rr. Dritan Hoxha; Nd. 92, H. 15, Njësia Bashkiake Nr. 11 Tirana, Albania

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