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Project finance
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Procurement
Trade Finance
Albania
53837
Financial institutions
Private
FI
06 Sep 2022
Approved
05 Oct 2022
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.
The proceeds of the loan will be utilised for the expansion of CFFA’s lending activities, which are expected to further support MSMEs in Albania.
The Project is consistent with the Strategy for Albania (BDS/AL/19-01 (Rev 1)), in that "the Bank will enhance private sector competitiveness and inclusion through wider access to finance and skills including indirect financing and risk sharing through financial institutions".
ETI score: 75
– Competitive: The project helps an SME (confirmed as an SME or SME Plus, according to EBRD’s definition) in a country with Large SME gaps access financing to support their operations.
– Resilient: The Partner Bank (Union Bank) will benefit from capital relief (recognised by the local central bank) on the full amount guaranteed by the EBRD which will enable it to expand lending.
CRIMSON FINANCE FUND ALBANIA
Crimson Finance Fund Albania ("CFFA" or the "Borrower") is a non-bank financial institution; licensed by the Bank of Albania ("BoA") since 2015, and targeting investments to micro-, small-, and medium-sized enterprises (MSMEs) in Albania. It currently offers four types of products: (i) term loans, which cover most of the needs of business activity, (ii) lines of credit, (iii) financial leasing, and (iv) factoring.
EUR 500,000.00
Under the Risk Sharing Framework (the "RSF"), EBRD will guarantee for up to 36 months up to 50% of the EUR 1.0m senior amortising loan (the "RSF sub-project") of Union Bank to finance CFFA’s plans for the expansion of its lending portfolio.
EUR 1,000,000.00
Under RSF, additionality stems from the following:
Categorised FI (2019 ESP) and Low Risk. The partner bank has carried out environmental and social due diligence on client’s operations and the project by using E&S checklist. The ESDD showed that the Client is in compliance with national environmental, health, safety and labour requirements as well as this transaction is associated with low E&S risks. The partner bank will be required to ensure that the client complies with national E&S laws and with EBRD’s PRs 2, 4 and 9 by adopting the EBRD’s E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the EBRD E&S Exclusion List. Union Bank will be required to continue submitting annual environmental and social reports to the Bank. The Physical Climate risk score of the project is 3. Therefore, the counterparty can be considered to be low risk and no second stage assessment is required. There is no GET component associated with this project.
None.
Dorin Rama
dorin.rama@crimsoncapital.org
+355 4 450 03 85
www.cffa.al
Rr. Bardhok Biba, Godina e Vjeter Tirana, Hyrja 1, Kati 2, Tirane
05 Oct 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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.