AASF-Societe Generale Albania RiskSharing Facility

Location:

Albania

Project number:

48327

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

04 Oct 2016

Status:

Signed

PSD disclosed:

18 Aug 2016

Translated version of this PSD: Albanian

Project Description

The EBRD intends to provide up to EUR 30 million unfunded risk sharing instrument to Societe Generale Albania under the EBRD Albania Agribusiness Support Facility. The financing will cover up to 50% of the aggregate amount of a portfolio of up to EUR 60 million outstanding eligible agribusiness loans.

The instrument aims to support financing to the underserved agribusiness sector in Albania. It will benefit from a First Loss Risk Cover contributed by the Government of Albania, and advisory services funded by other donors to be provided to agribusiness clients and Societe Generale Albania.

Project Objectives

The overall objective of the unfunded risk sharing facility is to promote sustainable lending to agribusiness sector in Albania and enhance access to finance for the sector.

Transition Impact

Transition impact is expected to derive from market expansion, demonstration of new replicable behaviour and activities, and transfer of skills.

The proposed project aims to support increased lending to farmers and other agribusiness entities in Albania through Societe Generale Albania. The Technical Assistance component of the Facility is expected to support the capacity building of Societe Generale Albania, as well as provide support for agribusiness sub-borrowers in the form of financial literacy training, business advice for preparation of investment plans, capacity building, production optimization (extending into higher value-added segments) and quality certifications.

Client Information

SOCIETE GENERALE
Societe Generale Albania is a universal bank that provides a wide range of banking products and services to corporate, SME and retail customers. It operates a network of 36 branches, covering all the main urban areas of Albania. In its years of operation, Societe Generale Albania has recorded a significant growth and today the bank is the 6th largest bank in the country by total assets.

EBRD Finance Summary

EUR 30,000,000.00

Total Project Cost

EUR 60,000,000.00

Environmental and Social Summary

Societe Generale Albania is required to comply with Performance Requirements 2 and 4 within its own operations and implement EBRD's Environmental and Social Risk Management Procedures in line with Performance Requirement 9. These procedures will be applied to sub-projects financed through the facility. Societe Generale Albania will submit Annual Environmental and Social Reports to the Bank on the implementation of the E&S Procedures and the PRs.

Technical Cooperation

The operation will be complemented by a comprehensive Technical Assistance package to support Societe Generale Albania capacity building and marketing outreach. In addition, advisory services to the agribusiness 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 in areas ranging from strategy, operations to quality management specific to the agribusiness sector.

Company Contact Information

Société Générale Albania
sgalb.info@socgen.com
+355 4 2 280 442/3
+355 4 2 280 441
www.societegenerale.al

Business opportunities

For business opportunities or procurement, contact the client company.

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