Intesa Sanpaolo Bank Albania, a subsidiary of Italy-based Intesa Sanpaolo, recently partnered with the Albania Agribusiness Support Facility (AASF), a funding vehicle established by the Albanian government and the UK-based European Bank for Reconstruction and Development (EBRD), in an effort to expand financial access for farmers and other agribusinesses. The fund has committed “unfunded risk participation” of approximately EUR 25 million (USD 30 million) to support EUR 50 million (USD 60 million) in lending by Intesa Sanpaolo Bank Albania.
Intesa Sanpaolo Bank Albania CEO, Silvio Pedrazzi said, “This agreement will enhance the development of sustainable financing in the agricultural sector, providing a viable and continuing line of business credit.”
Founded in 2007, Intesa Sanpaolo was formed upon the merger of Banca Intesa and Sanpaolo Istituto Mobiliare Italiano. As of 2017, Intesa Sanpaolo has a market capitalization of approximately USD 57 billion and about 12.3 million customers. As of December 2016, its Albanian subsidiary of reported total assets of ALL 150 billion (USD 1.3 billion) and total equity of ALL 19.5 billion (USD 173 million).
Since it was established in 2016, AASF has taken in USD 43 million from the Albanian government, and EBRD has committed up to USD 119 million to the facility.
EBRD was founded in 1991 and has 65 shareholding countries as of 2017. With a focus on “the promotion of private and entrepreneurial initiative,” it invested EUR 9.4 billion (USD 10.1 billion) in companies in 30 countries during 2016.
By Aleks Marceau, Research Associate
Sources and additional information:
EBRD press release:
http://www.ebrd.com/news/2017/intesa-sanpaolo-bank-joins-ebrds-albania-agribusiness-support-facility.html
EBRD home page:
http://www.ebrd.com/home
Intesa Sanpaolo home page:
http://www.group.intesasanpaolo.com/scriptIsir0/si09/chi_siamo/eng_wp_chi_siamo.jsp#/eng_home.jsp
More on AASF from EBRD:
http://www.ebrd.com/news/2016/albania-agribusiness-support-facility-launched-with-six-financial-institutions.html
MicroCapital on EBRD and OTP in the Ukraine:
https://www.microcapital.org/microcapital-brief-ebrd-lending-local-currency-worth-20m-otp-leasing-ukraine/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
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