FIF SME – Erste Bank Serbia
Provision of a long-term senior unsecured loan to Erste Bank Serbia (“EBS”) for on-lending to micro, small and medium-sized enterprises (“MSMEs”) in Serbia. The loan is contemplated under the Financial Intermediaries Framework (“FIF”).
the project’s objectives
The project will contribute to the expansion of lending to private enterprises through working capital lines and investment loans to SMEs, including companies operating in economically less developed regions of the country. Furthermore, the transaction supports EBS’ growth strategy and the diversification of its funding sources.
Impact of transition
The project improves the availability of medium-term financing for SMEs, which are the main source of jobs in the private sector and a major contributor to the economy. With its broad regional reach and SME-focused strategy, EBS is well positioned to provide much-needed financing to small businesses and contribute to SME development in the country. Emphasis will also be placed on lending in regions outside the capital, attracting new SME clients and maintaining adequate portfolio quality.
ERSTE BANK AD NOVI SAD
Erste Bank Serbia (“EBS”) is a dynamic medium-sized bank with an experienced management team and a solid and consistent performance. It holds a market share of 6.3% and ranks 6th by total assets among 26 banks in Serbia.
EBS is a subsidiary of Erste Group, which is Austria’s second largest bank rated A2, A, A respectively by Moody’s, S&P and Fitch. Erste Group’s credit rating is the highest among parent companies of EBRD partner banks in Serbia.
EBRD Financial Summary
Total project cost
The EBRD provides financing on terms that are not readily available in the market.
Environmental and social summary
FI rated (ESP 2019). EBS is an existing client and its performance to date for existing exposures has been satisfactory. EBS shall continue to comply with PRs 2, 4 and 9, implement EBRD E&S risk management procedures for corporates, SMEs and microloans, including compliance with the exclusion and reference list EBRD expanded E&S introduced with ESP 2019 and submit E&S reports to the Bank annually. Sub-borrowers financed by the EBS loan will be required to comply with national environmental, health, safety and labor (EHSL) requirements.
The use of project proceeds or allocated multiple may include solar sub-projects. These sub-projects will be managed in accordance with “The Proposed Management Approach for Solar Supply Chain Risk Management” (CS/FO/21-35) and any subsequent guidance developed under this approach.
Technical Cooperation and Grant Financing
No technical cooperation is envisaged for this project.
Bulevar Milutina Milankovica 3A 11070 Novi Belgrade
PSD latest update
Oct 05, 2022
More information on the EBRD’s approach to measuring transition impact is available here.
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Specific requests can be made using the EBRD’s inquiry form.
Environmental and Social Policy (ESP)
The ESP and associated performance requirements (PRs) set out how the EBRD implements its commitment to promote “environmentally sound and sustainable development”. The PSE and PRs include specific provisions for clients to comply with applicable requirements of national public information and consultation laws as well as establishing a grievance mechanism to receive and facilitate the resolution of concerns. and stakeholder grievances, particularly regarding the environmental and social performance of the client and the project. Proportionate to the nature and magnitude of a project’s environmental and social risks and impacts, the EBRD further requires its clients to disclose information, as appropriate, on the risks and impacts arising from the projects. or that they undertake extensive consultations with stakeholders and consider and respond to their feedback.
Further information on the EBRD’s practices in this regard can be found in the ESP.
Integrity and compliance
The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all Bank activities in accordance with international best practices. Integrity due diligence is performed on all Bank clients to ensure that projects do not pose unacceptable risks to the integrity or reputation of the Bank. The Bank believes that identifying and resolving issues during the approval stages of project appraisal is the most effective way to ensure the integrity of Bank transactions. OCCO plays a key role in these safeguarding efforts and also helps monitor integrity risks in projects after investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, inside or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email at email@example.com. All reported issues will be handled by OCCO for follow-up. All reports, including anonymous reports, will be investigated. Reports can be written in any language of the Bank or of the Bank’s countries of operations. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders in order to promote a better knowledge and understanding of its strategies, policies and operations after its entry into force on January 1, 2020. Please see the Access Policy page to the information to find out more. what information is available on the EBRD website.
Specific inquiries can be made using the EBRD’s inquiry form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the client or the Bank are unsuccessful (for example through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organizations can seek to address their concerns through the Independent Project Accountability Mechanism (IPAM).
IPAM independently investigates project issues that are suspected of causing (or likely to cause) harm. The objective of the mechanism is to: support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; determine whether the Bank has complied with its environmental and social policy or the project-specific provisions of its access to information policy; and, where appropriate, to remedy any existing non-compliance with these policies, while preventing any future non-compliance on the part of the Bank.
Please visit the Independent Project Accountability Mechanism webpage to learn more about IPAM and its mandate; how to submit a request for review; or contact IPAM by email firstname.lastname@example.org for advice and more information about IPAM and how to submit an application.