📋 Tender Overview
Location:
Bosnia and Herzegovina
Project number:
56016
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
BE
Approval date:
14 Jan 2025
Status:
In Exploratory, Pending Final Review
English-language PSD published:
16 Jan 2025
Project Description
A senior unsecured loan of up to €2 million under the Financial Intermediaries Framework (FIF).
Project Objectives
In line with the FIF objectives, the proposed sub-operation will support private MSMEs in Bosnia and Herzegovina with medium-term funding and promote recovery of MSMEs in regions affected by the October 2024 floods.
Transition Impact
ETI score: 64
The project contributes to the objectives of the Financial Intermediary Framework, supporting the Inclusive and Competitive transition qualities.
As set out in the EBRD's Equality of Opportunity Strategy ("EOS"), EBRD is committed to mitigating the impact of sudden shocks, such as crises and disasters, on livelihoods and human capital under the Inclusive TI quality. Structural inequalities in access to finance for MSMEs outside of the capital in BiH are exacerbated further by external events such as natural disasters that create additional drivers for inequality of opportunity.
Under Competitive TI quality, the Project will foster MSME competitiveness by increasing availability of financing and supporting their competitiveness vis-a-vis larger corporates in BiH. By providing immediate financial relief and promoting long-term sustainability, the project will help create a robust and resilient MSME ecosystem in Bosnia and Herzegovina.
Client Information
MICROFIN DOO
Mikrofin d.o.o. Banja Luka ("Mikrofin") is a non-bank microfinance institution ("MFI") founded in 1997. Mikrofin is the largest MFI in Bosnia and Herzegovina with a market share of approximately 32% (in terms of the gross loan portfolio) and total assets of EUR 224 million at YE 2023.
EBRD Finance Summary
EUR 2,000,000.00
Total Project Cost
EUR 2,000,000.00
Additionality
The Project recognizes the difficult situation that MSMEs face after a natural disaster. Due to limited liquidity and high-interest rates, these MSMEs cannot easily secure funds needed for capex to repair damages in the regions affected by October 2024 floods. Furthermore, the halt/decrease in business operations has led to disrupted cash flows, making it harder to stay in business and to repay existing loans. As a result, MSMEs in Affected Regions are considered higher risk clients for financial institutions. To address this, the one-off crisis funding for Mikrofin will direct majority of lending specifically towards MSMEs in Affected Regions, which are currently underserved or not served at all.
Environmental and Social Summary
Categorised FI (ESP 2019). Mikrofin is an existing client whose environmental and social (E&S) performance to date under existing exposures has been satisfactory. Mikrofin has improved its E&S
