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With ProCredit Bank, Proparco is supporting green projects and SMEs in Serbia

Project

Financial services
ProCredit Bank Serbia
ProCredit Bank Serbia
Signature date
Location
Multi-country Global, Serbia
Financing tool
Loan
Financing amount (Euro)
50000000
Financing details
EUR 50m loan
Customer
ProCredit Bank a.d. Beograd
Type of customer
Financial institution
Country of headquarters
Serbia
Project number
PRS1002
Environmental and social ranking
IF-B
Climate co-benefits
Project with climate co-benefits
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

This credit line is Proparco’s first operation in the banking sector in Serbia. It aims to support the bank’s financing for energy efficiency and renewable energy projects, as well as for the local private sector.

Client presentation

ProCredit Bank a.d. Beograd is a privately-owned bank that has been operating in Serbia since April 2001. The second largest subsidiary of ProCredit Group after Bulgaria, its central area of business is Belgrade and the dynamic agricultural regions in the north of the country, via a network of 16 branches and over 350 employees. With a market share of 4.1%, it is the 10th largest bank on the Serbian market. The bank mainly finances MSMEs and is the leader on the agricultural finance market.

Project description

Proparco has signed a EUR 50m credit line to ProCredit Bank a.d. Beograd which the bank will use to finance SMEs and green projects

Project impact

The expected impacts of this project are: 

  • A contribution to the economic development of the country by financing some 500 SMEs mainly operating in the agriculture, manufacturing and trade sectors. 
  • Support for over 8,000 jobs over the next 5 years, mainly in the companies which may be financed through Proparco’s credit line. Women account for 70% of permanent jobs in the bank. 
  • The development of energy efficiency (EE), renewable energy (RE) and environmental protection projects in Serbia. The support for RE and EE is particularly relevant in the context of Serbia where power generation relies heavily on carbon (73% coal). ProCredit Group has also developed a green lending methodology, institutionally worked on and led internally and in its subsidiaries. 

The project will thereby contribute to the achievement of SDG 8 (Decent work and economic growth), SDG 9 (Industry, innovation and infrastructure) and SDG 13 (Climate action).