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Project Description
Provision of a EUR 50 million senior preferred unsecured loan to Raiffeisen Bank Albania SHA (“RBAL”). The loan will have three tranches of up to EUR 20 million (Tranche A), EUR 10 million (Tranche B) and EUR 20 million (Tranche C). The EBRD loan is expected to mobilise additional senior preferred unsecured funding from an international investor.
Project Objectives
The proposed Project aims to support the resilience and regulatory compliance of RBAL, a local systemic bank in Albania. The loan will also facilitate RBAL’s expansion of lending to private small and medium-sized enterprises (“SMEs”), including to businesses operating in less economically developed regions of the country. The bank will aim to allocate 20% of the proceeds to GET-eligible projects.
Transition Impact
ETI score: 69
The project supports the Resilient and Competitive transition qualities.
The operation will support the Resilient transition quality by helping RBAL in meeting its respective regulatory requirements towards loss absorbing funding base and also support the bank’s resilience to market and regulatory shocks, thereby increasing its long-term sustainability. The transaction will contribute to the Competitive quality by increasing availability of financing to SMEs in Albania.
Client Information
RAIFFEISEN BANK SHA
RBAL is an existing EBRD client since 2019 and a universal bank in Albania ranked third by assets (15.3% market share) and second by loans (16.8% market share) at 1Q2023. The bank is headquartered in Tirana and operates through 74 branches in 43 cities across Albania, and has one of the largest ATM networks in the country. RBAL is 100% owned subsidiary of Raiffeisen Bank International AG Austria (“RBI”) which is listed on the Vienna Stock Exchange. RBI is rated A-/Negative by S&P and A2/Stable by Moody’s.
EBRD Finance Summary
EUR 50,000,000.00
Bail-in-able bilateral senior preferred unsecured loan.
Total Project Cost
EUR 50,000,000.00
Additionality
Financing Structure –
EBRD financing effectively bridges a financing gap due to adverse market conditions by offering a financing, tenor and volume that is not available on the market.
Innovative financing structures and/or instruments –
EBRD offers an innovative financing structure in form of first MREL-eligible loan in Albania and Western Balkans.
Resource mobilisation –
The EBRD project is expected to mobilise additional funding.
Standard-setting: helping projects and clients achieve higher standards –
Portion of the loan proceeds will be used to finance green investments in line with EBRD Green Economy Transition approach, thus supporting the bank’s efforts in promoting and financing projects with clear environmental benefits beyond the normal course of banking business.
Environmental and Social Summary
Categorised FI (ESP 2019). Environmental and Social Due Diligence (ESDD) included a review of RBAL’s latest Annual Environmental and Social Report (AESR) which indicates satisfactory implementation of the applicable Performance Requirements (PRs). RBAL will be required to continue to comply with PRs 2, 4 and 9 and the environmental and social procedures for corporate and SME lending. The project is consistent with the GET approach and the GET share is 20%.
Technical Cooperation and Grant Financing
None
Company Contact Information
Elona Llaci
Elona.LLACI@raiffeisen.al
https://www.raiffeisen.al/
Raiffeisen Bank Albania
Kika 2, Tirana,
Albania
Implementation summary
PSD last updated
19 Jun 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
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