MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $8.3m to Tutunska Banka of Macedonia for Small, Medium-sized Enterprises (SMEs), Energy Efficiency

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, has approved a loan of EUR 6 million (USD 8.3 million) to be disbursed to Macedonian commercial bank Tutunska Banka for on-lending to small and medium-sized enterprises (SMEs). EBRD will provide the funds in two phases, starting with an initial disbursement of EUR 3 million (USD 4.15 million) through EBRD’s Western Balkans Sustainable Energy Financing Facility II (WeBSEFF II) that will be used to finance energy efficiency and renewable energy projects in private businesses as well as municipal buildings. The remaining EUR 3 million (USD 4.15 million) will come through the Private Sector Support Facility (PSSF) for Western Balkans, another EBRD project, to be invested in SMEs to support compliance with European Union health and safety regulations. The loans each have five-year terms with an additional two-year grace period.

Tutunska Banka was founded in 1985 and became a member of Slovenia’s Nova Ljubljanska Banka (NLB) Group in 2000, which owns 87 percent of Tutunska’s total capital. As of 2012, Tutunska Banka reported total assets of MKD 59.6 billion (USD 960 million), return on equity of 10.1 percent and 50 branches in Macedonia serving 524,000 clients. As of 2012, NLB Group reports assets of EUR 11.5 billion (USD 15.2 billion) from operations in 16 European countries. In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

By Meraj Husain, Research Associate

About Tutunska Banka

Tutunska Banka is a Macedonia-based commercial bank that was founded in 1985. The bank provides services to corporate firms, small and medium-sized enterprises, and retail customers. Slovenia-based Nova Ljubljanska Banka (NLB) Group owns a 87-percent stake in Tutunska. As of 2012, Tutunska Banka reported total assets of MKD 59.6 billion (USD 960 million), a return on equity of 10.1 percent, 50 branches and 524,000 clients.

About Nova Ljubljanska Banka (NLB) Group

Nova Ljubljanska Banka (NLB) Group is a Slovenia-based international finance group that operates in 13 European countries. It is composed of 46 members including 10 banks, seven leasing companies, nine companies for international trade financing (factoring, forfaiting, export financing), three insurance companies, one asset management company and 16 other companies. As of 2012, NLB Group reports assets of EUR 11.5 billion (USD 15.2 billion).

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

Sources and Additional Resources

[1] European Bank for Reconstruction and Development: “EBRD Loans to Boost Energy Efficiency and Support Competitiveness of Macedonian Companies,” http://www.ebrd.com/pages/news/press/2014/140416.shtml

MicroCapital, March 17, 2014, “European Bank for Reconstruction and Development (EBRD) Considers $21m Loan to Compagnie Internationale de Leasing (CIL) for Micro-, Small, and Medium-sized Enterprises (MSMEs) in Tunisia,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-considers-21m-loan-to-compagnie-internationale-de-leasing-cil-for-micro-small-and-medium-sized-enterprises-msmes-in-t/

MicroCapital, February 5, 2014, “European Bank for Reconstruction and Development (EBRD) Lends $14m to Societe Generale Banka Montenegro to Support On-Lending for Housing,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-lends-14m-to-societe-generale-banka-montenegro-to-support-on-lending-for-housing/

MicroCapital, February 2, 2014, “European Bank for Reconstruction and Development (EBRD) to Loan $25m to Belvnesheconombank (BelVEB) of Belarus to Support On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-25m-to-belvnesheconombank-belveb-of-belarus-to-support-on-lending-to-micro-small-medium-sized-enterprises-msm/

MicroCapital, December 24, 2012, “EBRD Loans $56m to Ohridska Banka of Macedonia, Banca Intesa Beograd of Serbia for SMEs,” https://www.microcapital.org/microcapital-brief-ebrd-loans-56m-to-ohridska-banka-of-macedonia-banca-intesa-beograd-of-serbia-for-smes/

MicroCapital, April 12, 2011, “Tutunksa Banka Joins International Finance Corporation’s (IFC’s) Global Trade Finance Program (GTFP) to Support Small Enterprises in Macedonia,” https://www.microcapital.org/microcapital-brief-tutunska-banka-joins-international-finance-corporation%E2%80%99s-ifc%E2%80%99s-global-trade-finance-program-gtfp-to-support-small-enterprises-in-macedonia/

MicroCapital, January 16, 2009, “European Fund for Southeast Europe (EFSE) Provides EUR 5m Loan to Macedonian Commercial Bank, TTK Banka A.D. Skopje (TTK); Fund will be Used to Provide Microloans to Micro and Small Enterprises (MSEs) in Macedonia,” https://www.microcapital.org/microcapital-story-european-fund-for-southeast-europe-efse-provides-eur-5m-loan-to-macedonian-commercial-bank-ttk-banka-ad-skopje-ttk-fund-will-be-used-to-provide-microloans-to-micro-and-smal/

MicroCapital Universe Profile: Tutunska Banka
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tutunska+Banka

MicroCapital Universe Profile: Nova Ljubljanska Banka (NLB) Group https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=NLB+Group

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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