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.