Project Description
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”).
Project Objectives
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.
Transition Impact
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.
Client Information
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
EUR 10,000,000.00
Total Project Cost
EUR 10,000,000.00
Additionality
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
Mirjana Dragojlovic
[email protected]
+381 11 30 11 496
http://www.otpsrbija.rs
Bulevar Zorana Djindjica 50 a/b, Novi Beograd, Serbia
PSD last updated
17 Aug 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
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Tel: +44 20 7338 6794
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General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out 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 activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to [email protected]. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. 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 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.
Specific requests for information can be made using the EBRD Enquiries form.
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).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
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 [email protected] to get guidance and more information on IPAM and how to submit a request.
