Albania Agribusiness Support Facility

Location:

Albania

Project number:

47735

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Target board date:

16 Dec 2015

Status:

Board Approved

PSD disclosed:

13 Nov 2015

Sub-projects signed under this framework

Translated version of this PSD: Albanian

Project Description

The EBRD, in coperation with the Government of Albania, is considering a framework operation of up to EUR 100 million for the implementation of the Albania Agribusiness Support Facility (the "Project"). The Project will consist of a combination of credit lines for agribusiness lending and unfunded risk-sharing facilities for agribusiness loan portfolios of selected partner financial institutions ("PFIs") in Albania. In addition to the EBRD contribution of EUR 100 milion, the Project will benefit from a First Loss Risk Cover which will be contributed by the Government of Albania and it will also mobilise additional financing from the PFIs. A comprehensive technical cooperation package will complement the framework consisting in technical assistance to: i) PFIs - for capacity building in agribusiness lending, and 2) local agribusinesses - through business advise and transfer of know-how.

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

The main source of transition impact of the Project will derive from market expansion and development of private sector. The Project will improve access to finance for the under-served farmers and agribusinesses in Albania as a major factor in the development of this sector. Transition impact will also arise through transfer of skills by providing capacity building, product development and marketing outreach support to PFIs, as well as the demonstration effect of providing an innovative risk sharing instrument to the sector.

Client Information

Clients under the facility will be Albanian commercial banks and non-bank microfinance institutions.

The clients will be primarily selected from leading commercial banks with extensive outreach in the agribusiness sector and commitment to grow agribusiness lending on a sustainable basis.

EBRD Finance Summary

EUR 100,000,000.00

Total Project Cost

EUR 100,000,000.00

Total Project cost, including the financing mobilized by the PFIs, is expected to reach up to EUR 180 million.

Environmental and Social Summary

Categorised FI. The PFIs under the Agribusiness Support Facility will be required to adopt and implement EBRD's Environmental and Social Risk management Procedures in line with Performance Requirement (PR) 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 Facility will be supported by a comprehensive technical cooperation package to provide support to PFIs for capacity building, product development and marketing outreach. In addition, business advice and know-how will be provided to potential and existing sub-borrowers of the agribusiness credit lines and risk sharing facilities.

Company Contact Information

Marinela Kalemi

Email: kalemim@ebrd.com

Business opportunities

For business opportunities or procurement, contact the client company.

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