Belgrade, Serbia, December 27, 2022—Smaller businesses in Serbia will have increased access to financing, especially for green projects, with a loan of up to €50 million provided by IFC to AIK Banka A.D., leading domestically owned bank. The aim of this new partnership is to increase access to financing for SMEs and also develop a new offering of climate financing products in Serbia.
IFC's investment will support the expansion of the bank's lending program to small and medium enterprises (SMEs) and at least 20 percent of the financing will be earmarked for climate loans.
"We are excited to open a new chapter of our development by entering this partnership agreement, especially since it will give us an opportunity to boost our ESG agenda. AIK Banka is pursuing growth in a responsible and sustainable manner, supporting the development of local economy for more than 45 years," said Jelena Galic, Chairperson of the Board of Directors at AIK Banka. "This partnership will enable us to strengthen and further enhance our support to SMEs in their transition to sustainable future."
SMEs dominate the Serbian business economy, accounting for 99 percent of all firms. Yet, according to the MSME Finance Gap Report, the overall SME financing gap in Serbia is estimated at $7.59 billion, equivalent to 14 percent of the gross domestic product (GDP).
Against this backdrop, about three-quarters of SMEs in Serbia are seeking to finance green projects to enhance future resilience. However, they continue to face barriers, including lack of capital, insufficient skills and information about green technologies and financial products, among others. In response, IFC's loan will help meet this growing demand for green finance.
"We are pleased to enter this long-term partnership with Serbian-owned AIK Banka, with the view to further support the bank's expansion as a competitive and best-practice regional player," said Ary Naïm, IFC's Regional Manager for Central and Southeast Europe. "This operation will help AIK Banka diversify its lending portfolio and respond to increased needs for financing from SMEs in Serbia, in particular for investments in the green transition."
In addition to providing financing, IFC has been working with AIK Banka to help the bank establish its framework for Environmental, Social, and Governance (ESG) management, and better assess climate risk in its portfolio.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About AIK Banka
AIK Banka is one of the leading banks in Serbia with total assets of nearly 4 billion euros and more than 45 years long tradition. In 2016, it became the first bank from Serbia to enter the European Union market. It is a growth-oriented full-service financial institution that offers a complete range of financial solutions for businesses and individuals. Dedicated to sustainable growth and development, by sharing good practice, knowledge, and experience and with rational strategic investments, the Bank is focused on further enlargement of its presence and strengthening of its position within regional market and Europe. For more information, visit www.aikbanka.rs.
