34389 - Tutunska Sub

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Summary of Investment Information

Project Number

34389

Company Name

NLB BANKA AD SKOPJE

Date SPI Disclosed

Mar 19, 2014

Country

North Macedonia

Region

Europe

Projected Board Date

Apr 21, 2014

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Jul 21, 2014
Signed : Jun 12, 2015
Invested : Jun 26, 2015

Sector

Commercial Banking - General

Project Description

The proposed project is a subordinated loan, which would qualify as Tier II capital, to NLB Tutunska Banka AD Skopje (“Tutunska” or the “Bank”). The proposed project is intended to strengthen the Bank’s balance sheet by expanding its capital base as well as support its growth strategy.

Tutunska, the third largest bank by assets in FYR Macedonia, is an existing IFC client.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	27.30
Equity

Development Impact

E&S Category Rationale / Risks and Mitigation

This project consists of a subordinated loan to NLB Tutunska AD Skopje which would qualify as Tier II capital to support Tutunska’s capital base, enabling it to implement its growth strategy. The highest exposure in the Bank’s portfolio is to wholesale and Retail Trade covering any of ; gasoline stations , dry cleaners, printing, large auto and truck fleets , photographic film processing and any operations involving the use of any chemical or biological wastes or materials ; food and beverages; and construction and real estate and services . The project has been classified as FI -2 according to IFC Environmental and Social Review Procedure.

For this particular project, IFC''s applicable requirements will be to ensure that the Bank''s entire portfolio and the portfolio of relevant subsidiaries are screened against the IFC Exclusion List, the applicable environmental and social national laws and regulations and IFC Performance Standards where necessary. In addition NLB Tutunska Banka will comply with the requirements of IFC’s PS 2 on Labor and Working conditions.

The main E&S risks and impacts of this investment relate to NLB Tutunska having adequate systems and capacity in place to manage the operations being financed in accordance with applicable requirements, including compliance with the IFC’s Exclusion List, Host Country Laws and Regulations and IFC Performance Standards. NLB Tutunska has an Environmental and Social Management System (“ESMS”) in place for SME lending from IFC Credit line, and has designated staff members with overall responsibility for implementation of the ESMS. The ESMS will be enhanced to reflect the requirements for this new project. The Bank’s HR Practices are in general in conformity with IFC''s PS2 on Labor and Working conditions.

Contacts

For Inquiries About the Project, Contact

Ljubica Jancevska Dimitrovska
NLB Tutunska banka
Financial Market and Treasury Division, CRM Department Financial Institutions and International Finance
Majka Tereza 1, MK-1000 Skopje, R.Macedonia
T:+389 2 5100 809, F:+389 2 3212 927,
E: mailto:lj.jancevska@tb.com.mk

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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Type of Action	Timeline
Enhance and revise ESMS	Prior to Commitment
Implement ESMS and provide IFC with an ESMS implementation report	Within 6 months after Disbursement
Prepare Staff training Plan	Prior to Commitment
Implement Staff training	Within 6 months after disbursement

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