Loan offer

The funds will be available on favourable terms to a wide range of small and medium enterprises (SMEs) and mid-caps from different sectors, to help them meet their financial needs and fund new investments amid the ongoing crisis. By improving access to long-term financing, the credit line will allow Serbian firms to innovate and grow while creating new job opportunities.

The EIB has a longstanding and successful relationship with OTP Group Serbia, which has efficiently channelled EIB funding to serve SMEs and mid-caps over the last 15 years. Through joint operations, the banks have been able to support small businesses operating in fields spanning energy, environmental protection, industry, health, education, services, tourism and agriculture.

EIB Global is the EIB Group’s new specialised arm devoted to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnerships within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.

Thanks to the cooperation with OTP banka Srbija, and based on the prime rating on the international capital market (AAA), EIB may lend funds to SMEs and Mid-Caps under favourable loans through OTP banka Srbija. When contracting each single loan with a client from this credit line, OTP banka Srbija shall notify the client on the source of funding through this credit line, i.e. on EIB participation and its impact on the financial conditions of the received loan.

EIB has been active in the territory of Serbia since 1977, by providing financial assets for key infrastructural projects, as well as for SMEs, the industry, services and local
self-governments. Since the beginning of its activities in the country, more than EUR 7.2 billion has been invested into SMEs and revitalization of traffic, education, healthcare and utility infrastructure. For more information on EIB projects in Serbia, please go to: https://www.eib.org/en/projects/regions/enlargement/the-western-balkans/serbia/index.htm

Maturity and Amount of EIB Loan

EIB is reinforcing its support to SMEs and Mid-Caps with the aim to support and assist in their adjusting to the current economic situation. The term of a single loan is at least two years (the actual loan maturity will depend on the economic and technical lifespan of a project being financed), and may be used for financing of very small projects to investments with maximum costs of EUR 25 million. However, participation of EIB may not exceed EUR 12.5 million.

• Local SMEs with less than 250 employees on a consolidated basis prior to investment;
• Local Mid-Caps with less than 3, 000 employees on a consolidated basis prior to investment;
• Most economic sectors and activities are eligible with a few exceptions, including the production of weapons and ammunition, weapons, military or police equipment or infrastructure, equipment or infrastructure that restricts the individual rights and freedoms of people, activities that lead to environmental impacts, activities which are considered ethically or morally controversial or prohibited by national legislation, activities aimed at the production or sale of goods that are the subject of an act infringing a trademark or geographical indication, gambling and tobacco activities.

The EIB Loan may be used for financing new investments and expenditures incurred in the context of SMEs and Mid-Caps development. Namely for:

• Tangible investments: purchase, renovation or expansion of tangible assets (fixed assets), with certain restrictions related to the purchase of land.
• Intangible investments: especially expenses for research and development, purchase of process licenses and software
• Medium-term and long-term working capital requirements needed for operational activity of SMEs or Mid-Caps.

• You can receive favourable interest rates comparing to the standard lending conditions.
• You can negotiate in terms of maturity, term or loan repayment frequency in line with the circumstances and cash flow demands of your operations.
• This enables you to significantly invest in your operations without an adverse impact on your cash flow or liquidity.

With a reasonable notice, EIB is entitled to request from you that EIB representatives, with or without representatives from OTP banka Srbija, visit and inspect all locations, facilities and works that comprise the project subject to the loan. In addition, upon request of EIB, OTP banka Srbija is obliged to provide EIB with all available information on loan beneficiaries from this credit line.