📋 Tender Overview
Location: Montenegro
Project number: 55578
Business sector: Financial institutions
Notice type: Private
Environmental category: FI
EBRD Finance Summary: EUR 10,000,000.00
Total Project Cost: EUR 10,000,000.00
Project Description
The provision of a senior secured loan of up to € 10 million to Hipotekarna Banka AD Podgorica (HB) in two equal tranches for on-lending to eligible private individuals for housing purposes. The facility will contribute to the development of the local financial sector, mainly its mortgage lending segment, and to the improvement of housing conditions of private individuals. The transaction is proposed under the Financial Collateral Backed Senior Lending Product line (CBL), secured by EU supranational bonds.
Project Objectives
The proceeds of the loan will be used by HB to provide long-term financing for residential mortgage lending in Montenegro in accorance with the List of Minimum Standards for Residential Mortgage Lending (LMS).
Transition Impact
ETI score: 61
The project will support Competitive and Resilient transition qualities.
This project will support HB's competitiveness by providing much-needed long term funding to support the growth of the mortage portfolio by at least 1.2x the amount of the EBRD loan. Mortgage penetration remains low in Montenegro and mortgage lending has further room for growth subject to availability of sufficiently long-term funding. The adherence to LMS and maintenance of asset quality will contribute to the Resilient quality.
