📋 Tender Overview
Location:
Albania
Project number:
55880
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
FI
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 2.0 million to be made available in two tranches to Union Bank ("UB") under the Western Balkans Youth in Business ("WB YiB") Programme. The second tranche will be uncommitted.
Project Objectives
The proposed operation will comply with the criteria under the WB Youth in Business Programme. The proceeds of the Bank's investment will be used for eligible Youth MSMEs in accordance with the respective Policy Statement.
Transition Impact
ETI score: 72
The project contributes to the objectives of the FIF, supporting the Transition Impact qualities of Inclusive and Competitive:
Inclusive: The project will contribute to the economic inclusion of young enteprenuers by supporting Youth SMEs' access to finance and business advisory services, while demonstrating the business case for scaling-up lending to the Youth SME segment.
Competitive: Transition impact is expected to derive from market expansion and through building a more competitive financial sector by strengthening the capacity of the Partner Financial Institutions (PFIs) for financing Youth 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 2,000,000.00
Total Project Cost
EUR 2,000,000.00
Additionality
Additionality is achieved by combining the necessary long-term financing with TC and First Loss Risk Cover into a package that promotes investment in Youth SMEs in Albania.
Furthermore, UB will make use of EBRD expertise for the adoption of gender standards and equal opportunities action plans. In particular, UB will support the EBRD's policy dialogue and actively participate in the events and workshops aimed at improving their understanding of the segment and the challenges that women face in accessing finance as part of the EBRD-led nation/region-wide public-private policy dialogue activities.
Technical Cooperation and Grant Financing
The Programme is supported by the governments of Sweden via Swedish International Development Cooperation Agency, Italy via the Central European Initiative, Luxembourg via the EBRD Small Business Impact Fund to support PFI's capacity building and Youth MSMEs.
