Raiffeisen Bank ad Beograd MREL-eligible Bonds

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

An investment of up to RSD 2.3 bn (equivalent to €19.6 mn) in inaugural minimum requirement for own funds and eligible liabilities (MREL)-eligible local currency bonds issued by Raiffeisen Bank ad Beograd (RBB) to be listed on the Belgrade Stock Exchange. The bonds will be contractually eligible against RBB's MREL for bail-in-able funding and have a maturity of 4 years with a non-callable period of 3 years.

Project ID 55189

Status Signed

Location

Serbia

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Milena Perazic
milena.perazic@raiffeisenbank.rs
+381112207161
+381112207170
https://www.raiffeisen-leasing.rs/
Raiffeisen banka a.d. Djordja Stanojevica 16, 11070 Beograd, Srbija

Project ID 55189

Status Signed

Location

Serbia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

23 Apr 2024

Disclosure date

31 Jul 2024

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project description

Project objectives

The project supports resilience of a local bank by helping RBB build diversified funding base for the minimum requirement for own funds and eligible liabilities and reinforces local capital market development and dinarisation in Serbia by Bank's participation in bonds issued by RBB in local currency. The project contributes to the expansion of lending to private businesses through working capital lines and investment loans to SMEs, including enterprises operating in economically less developed regions of the country. Furthermore, the transaction supports RBB's growth strategy and provides a source of medium term local currency funding. The bank will aim to allocate up to € 6 mn of the proceeds to Green Economy Transition (GET) eligible projects.

Transition impact

ETI Score:67

ject contributes to the objectives of the Financial Intermediary Framework ("FIF"), supporting the Resilient and Competitive transition qualities.

Client information

RAIFFEISEN BANKA AD BEOGRAD

RBB is a large universal bank in Serbia providing services to both corporate and retail market segments. As of 3Q 2023, RBB was the third largest bank in Serbia with total assets of € 5.7bln (11.7 per cent of market share) and net loan portfolio of € 2.9bln (10.9 per cent of market share). The bank has countrywide presence with 132 branches and 2,276 employees. RBB wholly owns Raiffeisen Leasing Serbia and two entities which offer private pension and investment services.

EBRD Finance Summary

RSD 2,900,000,000.00

Total project cost

RSD 6,400,000,000.00

Additionality

The additionality sources stem from the financing structure whereby: (i) the EBRD financing effectively bridges a financing gap due to adverse market conditions, (ii) the EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, which is necessary to structure the project, (iii) the EBRD offers a tenor above the market average, which is necessary to structure the project, (iv) the EBRD offers a large volume instrument that fills a market funding gap and is required to structure the project, and (v) the EBRD offers local currency financing on terms not readily available in the market. Furthermore, the Bank's additionality is derived from innovative financing structures and/or instruments by offering an innovative financing structure on commercial terms not available from other banks.

Environmental & Social Summary

Categorised FI (2019 ESP). The due diligence has been based on the publicly available information as well as ESDD questionnaire. RBB is an existing client of the Bank through its leasing subsidiary. Under the existing exposures, RBB has been compliant with the EBRD's Performance Requirements 2, 4 and 9. RBB will be required to continue to comply with these PRs, to apply the E&S Exclusion List and Referral List to the allocation of the EBRD proceeds in the bonds and make sure that no high risk and no Cat A projects are financed through this instrument. Furthermore, RBB will be required to continue to implement EBRD's applicable E&S Risk Management Procedures, ensure that the projects financed though the issuances comply with national environmental, health, safety and labour (EHSL) requirements and continue to submit annual environmental and social reports to the EBRD. Any potential renewable energy project financed through the various issuances will need to follow the E&S Eligibility Criteria for hydro, wind, solar, bioenergy and geothermal projects, as applicable.. Any potential solar sub-project would be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/22-08) and any subsequent guidance developed under that approach.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Milena Perazic
milena.perazic@raiffeisenbank.rs
+381112207161
+381112207170
https://www.raiffeisen-leasing.rs/
Raiffeisen banka a.d. Djordja Stanojevica 16, 11070 Beograd, Srbija

PSD last updated

31 Jul 2024

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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Raiffeisen Bank ad Beograd MREL-eligible Bonds

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)