SLGP RSF TEB - Kosovo (IFC-41672)

Countries
  • Kosovo
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Hold
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 23, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
TEB Sh.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 11.21 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS May 15, 2024

Disclosed by Bank Feb 21, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the IFC, the project consists of a risk-sharing facility for a portfolio with TEB Sh.A. under IFC’s Small Loans Guarantee Program (“SLGP”) which is supported by the IDA18 IFC-MIGA Private Sector Window’s Blended Finance Facility (“IDA PSW-BFF”) to de-risk and scales up lending to SMEs, in this case with a focus on underserved very small enterprises (“VSEs”), women-owned SMEs (WSMEs) and agri-SMEs in Kosovo.

The project is expected to have a strong development impact as follows:

(i) Scaling up small loan financing to SMEs, including underserved segments such as women entrepreneurs and farmers in Kosovo, which in turn supports job creation;

(ii) With the risk sharing facility, encouraging alternative financing structures and promote cash flow-based lending in a market dominated by collateral-based lending; and

(iii) Promoting growth in agribusiness, a key economic sector: Approximately 60% of the country's poor live in rural areas and depend on the agricultural sector for their livelihoods. In this context, the project will reach the base of the pyramid by directly supporting the most vulnerable segments of the population.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the IFC, the Project includes a risk sharing facility in the aggregate portfolio amount of up to EUR20 million (to be committed into two tranches of up to EUR10 million each), with a maximum exposure for IFC of up to EUR10 million to support lending by TEB Sh.A. to qualifying VSEs and SMEs in Kosovo.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to the IFC, TEB Sh.A. is 100% owned by TEB Holding A.S., a Turkish financial holding company and a joint venture on a 50%/50% basis among BNP Paribas and Colakoglu family in Turkey.   


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project contacts not available at the time of disclosure.

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works