Bosnia and Herzegovina to get EIB Global support on green and social impact financing

• EIB Global to advise Central Bank of Bosnia and Herzegovina on green financing.
• The EU Bank also launches €20 million credit line and signs €3.3 million grant to lender Intesa Sanpaolo Banka d.d. BiH for social impact funding of companies.

The European Investment Bank (EIB Global) will provide guidance on green financing to the Central Bank of Bosnia and Herzegovina and facilitate access to funding for companies in the country.

Under its Greening Financial Systems (GFS) technical assistance programme, EIB Global has agreed to advise the Central Bank of Bosnia and Herzegovina on strengthening the management of climate risks through regulation and supervision and on improving the financial industry’s green reporting standards. The programme aims to help local banks assess corporate climate risk exposure and accelerate the use of sustainable practices to scale up green investments in the country.

EIB Global also launched a €20 million credit line and signed a €3.3 million grant to Intesa Sanpaolo Banka d.d. BiH, local intermediary, to ease financing for small and medium-sized enterprises (SMEs) and mid-caps. Being offered by EIB Global for the first time in Bosnia and Herzegovina, this social impact credit line aims at encouraging businesses to step up inclusive employment practices. The loans and grants will be directed at companies that promote employment, career opportunities and leadership for women, young people and vulnerable social groups.

“EIB Global is supporting the transition to an inclusive and climate-resilient economy in Bosnia and Herzegovina. We are driving environmental and social progress, unlocking green investments and creating lasting jobs for those who need them most,” said EIB representative to Bosnia and Herzegovina Miha Švent, who signed the agreements in Sarajevo.

“The Central Bank of Bosnia and Herzegovina strongly supports initiatives that strengthen the resilience of the financial system and accelerate its transition toward sustainability,” said the Governor of the Central Bank of Bosnia and Herzegovina Jasmina Selimović. “Cooperation with EIB Global represents an important step in enhancing the sector’s capacity to identify and measure climate risks and manage them. We are confident that this support will contribute to a more stable and modern financial system and create a more favorable environment for green and inclusive investments in Bosnia and Herzegovina.”

“The Green Financial Systems program has been developed with support from the German funded International Climate Initiative”, said Germany’s Ambassador to Bosnia and Herzegovina Alfred Grannas. “This shows that Germany wants Bosnia and Herzegovina to become a greener, more modern and prospering society that will hopefully be able to join the European Union soon. I am convinced that the cooperation with EIB will contribute to reaching this goal.”

The EIB Global credit line and grant to Intesa Sanpaolo Banka d.d. BiH build on previous agreements between both organisations that have led to the disbursement of almost €220 million in financing in Bosnia and Herzegovina. This sum has supported more than 300 companies and helped create over 1 600 jobs, as well as sustaining 27 000 other jobs in the country.

“This agreement marks a significant milestone in our collaboration with EIB Global and reflects our shared vision of fostering a more sustainable and resilient economy in Bosnia and Herzegovina. For Intesa Sanpaolo Banka d.d. BiH, it is both a recognition of our continued commitment to responsible banking and an important opportunity to further strengthen our support for the local business community. As part of the Intesa Sanpaolo Group, we are proud to contribute to initiatives that promote sustainability and inclusive growth across all the markets in which we operate. We deeply value the trust and partnership of EIB Global, which allow us to turn our strategic priorities – sustainability, inclusion, and long-term value creation – into tangible benefits for our clients and for society as a whole,” said President of the Management Board of Intesa Sanpaolo Banka d.d. BiH Michele Castoro.

Background information

About the European Investment Bank and EIB Global

The EIB is the long-term financing institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB supports projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through its offices around the world.

About Intesa Sanpaolo Banka d.d. BiH:

Intesa Sanpaolo Banka d.d. BiH is a commercial bank and one of the leading banks in Bosnia and Herzegovina with long business continuity. The Bank provides all types of banking services in domestic and foreign currencies with a wide portfolio of services intended for corporate banking and retail. It operates through five main regional branches and 44 operating units and has an extensive network of ATMs and POS devices. It is present on the entire territory of Bosnia and Herzegovina, in the Federation of Bosnia and Herzegovina, Republic of Srpska and Brčko District. Intesa Sanpaolo Banka d.d. BiH is a member of the PBZ Group, which is also part of the Intesa Sanpaolo Group, one of the largest banking groups in Europe.

About the EIB in BiH

The EU bank has been active in BiH since 1977. To date, it has invested €3.4 billion, mostly in support of the transportation sector and small and medium businesses. For more information regarding the EIB’s projects in BiH, please refer to: https://www.eib.org/projects/regions/enlargement/the-western-balkans/bosnia-herzegovina/index.htm

The EIB is one of the leading international financiers in the Western Balkans. For detailed information on the EIB’s activities in the Western Balkans, please visit www.eib.org/publications/the-eib-in-the-western-balkans.

About the EIB’s Greening Financial Systems Programme

Through the Greening Financial Systems (GFS) technical assistance programme, the EIB has joined forces with BMWE, the German Federal Ministry for Economic Affairs and Energy, to provide tailor-made technical assistance to central banks, supervisors and financial institutions to build climate-resilient financial systems around the world. The programme is financed by the German government through the EIB’s International Climate Initiative Fund and implemented in collaboration with the NDC Partnership, a global coalition of countries and institutions collaborating to drive climate action.