📋 Tender Overview
Location:
Albania
Project number:
55881
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
BE
Approval date:
26 Nov 2024
Status:
Approved
English-language PSD published:
06 Dec 2024
Project Description
Provision of a senior unsecured loan of up to EUR 3.0 million to be made available in three tranches under the EBRD Go Digital in WB programme. The second and third tranches will be uncommitted.
Project Objectives
The proceeds of the Bank's investment will be used for providing a combination of specialised financing for automation, digitalisation, competitiveness and green technologies to eligible SMEs in accordance with the respective Policy Statement. At least 60% of the total investments shall be in eligible automation and digitalisation projects, of which at least 60% shall be GET eligible. Furthermore, at least 60% of the total investments shall be GET eligible.
Transition Impact
ETI score: 65
The project contributes to the objectives of the FIF, supporting the Transition Impact qualities of Competitive and Green:
Competitive: The Project will encourage the Competitiveness of SMEs by expanding digital lending to SMEs in-line with FIF standards.
Green: The Project will contribute to the Green TI quality by addressing energy efficiency as part of the eligible activities of investments of SMEs.
Client Information
UNION BANK SHA
Union Bank ShA ("UB") is a mid-size bank in Albania, mainly focusing on SME and retail lending. As of end-2Q2024, UB was the 8th largest bank in the country (out of 11) in terms of both assets and loan portfolio, with 5.1% and 6.4% market share, respectively.
EBRD Finance Summary
EUR 3,000,000.00
Total Project Cost
EUR 3,000,000.00
Additionality
Additionality in this project includes providing longer-tenor, mid-term financing unavailable in the short-term deposit-funded market, along with expertise in automation, digitalisation, and green lending.
Technical cooperation will build UB's internal capacity to enhance digital and energy-saving efforts, ensuring compliance with environmental and social (E&S) requirements, while 60% of sub-loans are expected to meet GET standards.
A Gender SMART component promotes equitable access to finance for women-led SMEs, with specialized training to improve digitalisation readiness, project appeal, and gender-responsive outreach strategies.
Technical Cooperation and Grant Financing
TC: TC includes support from Programme Consultant to SMEs in preparing relevant and bankable investment plans and to support PFIs in developing a pipeline and portfolio of eligible sub-investments, assist with the implementation, monitoring and verification of technical implementation and compliance of the investments before the incentive payments are released to the relevant SMEs. Gender has been mainstreamed at the Programme level to include a specific focus on women-led SMEs, with trainings to enh
