📋 Tender Overview
Project ID: 56241
Status: Approved
Location: Bosnia and Herzegovina
Business Sector: Financial Institutions
Notice Type: Private
Project Description
Provision of a long-term senior secured loan to Raiffeisen Bank dd BiH ("RBBH") for on-lending to Youth micro, small and medium-sized enterprises ("MSMEs") in Bosnia and Herzegovina ("BiH"). The loan is envisaged under the WB Youth in Business Programme ("WB YiB").
Project Objectives
The project will contribute to youth's economic inclusion by supporting youth-led MSMEs' access to finance and business advisory services.
Transition Impact
ETI score:72
project contributes to the objectives of the WB YiB, supporting the Transition Impact qualities of Inclusive and Competitive:
Inclusive: The project will contribute to youth's economic inclusion by supporting youth-led MSMEs' access to finance and business advisory services, while demonstrating the business case for scaling-up lending to the youth-led MSME segment.
Competitive: Transition impact is expected to derive from market expansion in line with EBRD Financial Intermediaries Framework.
Client Information
RAIFFEISEN BANK DD BOSNIA AND HERZEGOVINA
RBBH is a universal bank, headquartered in Sarajevo, operating through 84 branches in BiH with 1,382 employees. The bank is ranked second in terms of total assets (13.4% market share), loan portfolio (11.9% market share) and deposits (13.6% market share) at Q3 2024.
EBRD Finance Summary
EUR 2,500,000.00
Total Project Cost
EUR 2,500,000.00
Additionality
The EBRD loan will provide much-needed term financing and TC, which will help address issues of limited availability of medium-to long-term financing in order for MSMEs to introduce standards in line with the EU directives and increase the awareness and knowledge of MSMEs about the benefits of compliance with the EU standards. The loan is highly additional by supporting a targeted, underserved sub-sector, for which funding is not available in the market. The Programme includes training, advisory support for RBBH and the youth-led MSMEs through ASB activities, allowing all parties to set higher youth-led MSMEs inclusion, as well as to receive expertise and knowledge from the EBRD.
Environmental and Social Summary
Categorised FI (ESP 2024). RBBH is an existing client with satisfactory environmental and social (E&S) performance under its current exposures. RBBH has enhanced its E&S policies and procedures to align with the EBRD and IFC requirements, applying these standards across its entire commercial lending portfolio. As part of the Raiffeisen Group, which became a UN Principles for Responsible Banking member in 2023, the Group also publishes an ESG policy and an annual sustainability report. RBBH is expected to maintain its E&S management system to effectively assess, manage, and monitor the environmental and social risks and impacts associated with the sub-projects it finances. RBBH must comply with the EBRD's
