“We're here to help companies invest in their future and grow with confidence. That means more jobs, stronger communities, and a healthier economy in North Macedonia.”
Signature(s)
Amount
€ 100,000,000
Countries
Sector(s)
North Macedonia
: € 100,000,000
Credit lines
: € 100,000,000
Signature date(s)
24/07/2023 : € 100,000,000
Link to source
Other links
Summary sheet
Release date
31 August 2022
Status
Reference
Signed | 24/07/2023
20220407
Project name
Promoter - financial intermediary
DBNM LOAN FOR SMES MID-CAPS AND GREEN TRANSITION
ACCEPTABLE BANK(S),DEVELOPMENT BANK OF NORTH MACEDONIA JSC SKOPJE
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 100 million
not applicable
Location
Sector(s)
- Credit lines - Credit lines
Description
Objectives
EUR 100 million credit line to the Development Bank of North Macedonia (DBNM) to address liquidity and investment needs of small and medium-sized enterprises (SMEs) and mid-caps in the Republic of North Macedonia. The facility targets at least 30% Climate Action and Environmental Sustainability (CA&ES) projects, with particular focus on energy efficiency interventions.
The operation is a multi-objective credit line to the Development Bank of North Macedonia (DBNM) to provide SMEs, mid-caps and other entities in the country with affordable, long-term liquidity support to meet their working capital and investment needs. At least 30% of the EIB credit line will go towards Climate Action and Environmental Sustainability (CA&ES) investments, to help local businesses meet their green ambitions, notably on (but not limited to) Energy Efficiency interventions. A technical assistance facility will support DBNM and local intermediaries with origination efforts, implementation of CA&ES requirements and potentially development of new products, Credit and Risk Management policies and best practices.
Additionality and Impact
The operation is a EUR 100m loan to the Development Bank of North Macedonia (DBNM) to provide SMEs, Mid-Caps and other eligible entities in the country with affordable, long-term liquidity. Access to finance remains an issue in North Macedonia with as much as 40% of SMEs in need of a loan being credit constrained. The economic crisis caused by the war in Ukraine has put a further strain on businesses and supply chains. The operation forms part of a set of measures put forth by the Government in response of the economic and energy crises. Indeed, at least 30% of the credit line will go towards Climate Action and Environmental Sustainability (CA&ES) investments, to help local businesses meet their green ambitions. The facility will be implemented by the DBNM, a longstanding partner of the EIB in North Macedonia, via agreements with local commercial banks. A technical assistance facility will support our partners with origination efforts, implementation of CA&ES requirements and implementation of new green policies and practices.
The operation is in line with EU and national strategies, notably the Economic Reform Programme 2022-2024, the Economic and Investment Plan and the Green Agenda for the Western Balkans. The operation also supports various Sustainable Development Goals, in particular SDG8, SDG9 and SDG13.
Environmental aspects
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation and standards, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation and standards, as appropriate.
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Link to source
Summary sheet
Other links
News & Stories
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Inside the project
How and Why
Smart advice and favourable loan terms
Why
- Small companies want to modernise and lower their emissions
- These changes help companies become more competitive at home and abroad, meet the requirements of EU value chains and build resilience to global warming
- Companies save money when they cut energy consumption
How
- The loan programme offers advice and concessional loans on favourable financial terms
- Implemented with help from the national government, the Development Bank of North Macedonia and local banks – a longstanding and successful EIB partnership model.
- Technical assistance helps banks and companies to identify suitable green projects
Sectors & Countries
PLAY VIDEO
2:52
Story
Food for thought
As energy prices rise and environmental regulations tighten, food producers are under increasing pressure to reduce their carbon footprint and become more efficient. For companies in the Western Balkans, where energy infrastructure is often outdated and sustainability standards are unpredictable, the challenge is particularly acute.
Vitaminka, a leading food manufacturer based in Prilep, has invested €1.65 million in rooftop solar panels and automated production systems, supported by an EIB credit line. The solar panels cut energy consumption by 35%. The automated packaging lines improved production speed and workplace efficiency. This work helps the company meet international environmental standards and improves its ability to compete globally.
“By empowering small companies to invest in cleaner technologies and processes, we are fostering innovation and moving closer to a low-carbon, resilient economy.”
Car parts company shifts gears
As the automotive industry undergoes a significant transformation driven by technological advancements, stricter environmental regulations and shifting market demands, many companies in the sector are embracing more innovation and sustainability.
LTH Learnica, one of North Macedonia’s leading automotive parts manufacturers, is stepping up its efforts towards decarbonisation. Based in Ohrid, the company specialises in high-precision aluminium diecasting and supplies major global clients. With a €1.5 million EIB-backed investment, the company automated its production processes, cutting energy costs and making the workforce more efficient.
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Links
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