FIF - Sustainable Reboot SME - PCBA

A senior unsecured loan of up to EUR 6.0 million to ProCredit Bank Albania ("PCBA") for providing sub-loans to small and medium-sized enterprises ("SMEs") in Albania through the Sustainable Reboot SME Programme ("Reboot SME").

The proceeds of the Bank's investment will be used to provide sub-loans to help finance investments in micro, small and medium-sized enterprises in Albania that will assist in improving the competitiveness and compliance with technical standards in line with the EU Directives and other internationally recognized standards. At least 70% of the investments will be used for GET eligible technologies. Sub-projects will be selected according to technical and financial eligibility criteria set forth in the Policy Statement for the Sustainable Reboot SME Programme.

ETI score: 60

The project will contribute to the overall Programme objectives and support the Competitive and Green TI qualities. The Competitive quality will be supported by: (i) facilitating SMEs' increased competitiveness; and (ii) prioritising investments that result in compliance with EU Directives and other relevant international standards. The project will also facilitate investments in green technologies that will drive the transition to an environmentally sustainable, lower-carbon and climate-resilient green economy, thus supporting the Green quality.

PROCREDIT BANK ALBANIA SHA

PCBA, a subsidiary of ProCredit Holding, is a small sized SME-oriented bank operating in Albania with a 2.3% market share in terms of total assets as of end-3Q 2023. PCBA focuses on SME lending, green finance and digitalisation.

EUR 6,000,000.00

EUR 6,000,000.00

The project combines the necessary medium-term financing with technical support and targeted investment incentives into a package that promotes green investments that will improve the competitiveness of SMEs.

Categorised FI (ESP 2019). PCBA is an existing client with a risk sharing facility for agribusiness support, as well as green and SME focused credit lines. PCBA will be required to continue to comply with Performance Requirements 2, 4 and 9 and submit annual environmental and social reports to the Bank. PCBA will be required to apply the EBRD's Environmental and Social Risk Management Procedures for Corporate, SME and Micro Loans and the extended E&S Exclusion list and new Referral list introduced with ESP 2019. Eligible sub-projects under Reboot SME will be required to be in compliance with the national environmental, social, labour, health and safety legislation.

The TC will include support by the programme consultant that will assist with the implementation, marketing and monitoring of the Programme and a separate verification of the technical implementation of the investments by the Sub-borrowers before the incentive payment is released. The source for TC funds at programme level is the EBRD's Shareholders' Special Fund, Denmark and SECO via the Small Business Impact Fund.

The portion of non-TC grant vs. EBRD financing provided will be up to 10% per Sub-operation. The source for non-TC funding at programme level is Norway, Luxemburg, the US and SECO via the Small Business Impact Fund, as well as Denmark and EBRD's Shareholders' Special Fund.

The source for both TC and non-TC funds for this particular Sub-operation with PCBA is SECO via the Small Business Impact Fund.

Mirsad [email protected]+355 42 389 389www.procreditbank.com.alProCredit Bank AlbaniaDritan Hoxha Nd.92, H15Njesia Bashkiake Nr.11,Tirana, ZIP Code 1026

18 Jul 2024

Further information regarding the EBRD’s approach to measuring transition impact is available here.

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More information on the EBRD’s practices in this regard is set out in the ESP.

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Specific requests for information can be made using the EBRD Enquiries form.

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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.