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EIB LOANS

UniCredit Bank, under the Loan Agreement with the European Investment Bank (EIB) and the European Union's Support from the Economic Resilience Initiative (ERI), provides financing opportunities for companies dedicated to improving the social impact of their business and creating long-term leadership, as well as employment opportunities for various categories of women, young people and segments of the population that face greater obstacles to entering the labor market.

Loans with a minimum maturity of 2 years (the actual term of the loan depends on the technical and economic duration of the financed project) and can be used to finance projects and investments with a maximum value of 25 million euros. Each loan will be financed with 50% from EIB funds and 50% from funds provided by the Bank.

Beneficiaries:

Micro, small and medium-sized enterprises (according to the EU definition) with less than 250 employees ("SME") and EUR 50 million in annual revenue or EUR 43 million in asset value at the time of submitting the loan application;

Companies categorized as "Mid Cap" according to the EU definition)with a minimum number of employees of 250 and a maximum of 3000 ("Mid Cap") at the time of submitting the loan application

Purpose:

• Tangible asset– purchase, renovation or expansion of tangible assets, including development and planning costs during the construction phase; purchase of assets other than real estate (such as construction equipment for the purpose of leasing to third parties)

• Investments in intangible assets – research and development expenses, purchase of process licenses, software and other rights

• Working capital loans

Loan Amount:

• The maximum amount for Beneficiaries defined as micro, small and medium enterprises ("SME") is EUR 25,000,000

• The maximum amount for Beneficiaries defined as "Mid Cap" segment is EUR 12,000,000

Repayment period:

• The minimum maturity of the loan is 2 years

• The maximum term of the loan is 7 years, including the grace period, if any

Advantages:

• Favorable interest rates compared to standard credit rates for at least 15 basis points on the EIB part of the financing;

• Reimbursement of funds (grant) on the EIB's part of the financing after repayment of the loan, for those companies that meet the agreed goals dedicated to improving the social impact

UniCredit Bank Serbia and National Bank of Serbia have signed the Finance Intermediary Agreement which defines the implementation of Finance Agreement signed between European Investment Bank (EIB), Republic of Serbia and National Bank of Serbia on Apex loan for financing of small-medium enterprises (SMEs) and other priorities (EIB Apex Line).

European Investment Bank (EIB) is a financial institution of European Union established in 1958 in line with the Rome Agreement that participates equally along with domestic financial institutions at financing of investment programs for SMEs as one of the goals of European Union.

UniCredit Bank under the Loan Agreement with the European Investment Bank (EIB) under the „EIB VB COVID 19 Response for SMESs & MidCaps Program Loan program“ provides financing opportunities for companies affected by the Covid 19 pandemic. Loans with a minimum maturity of 2, exceptionally one year to the end of August 2022 (the actual term of the loan depends on the technical and economic duration of the financed project)

Beneficiaries:

Companies categorized as "Mid Cap" according to the EU definition)with a minimum number of employees of 250 and a maximum of 3000 ("Mid Cap") at the time of submitting the loan application

Purpose:

• Investments in intangible assets – research and development expenses, purchase of process licenses, software and other rights

• Working capital loans

Loan Amount:

• The maximum amount for Beneficiaries is EUR 12,500,000

Repayment period:

• The minimum maturity of the loan is 2 years

• The maximum term of the loan is 7 years, including the grace period, if any

Advantages:

• Favorable interest rates compared to standard credit rates for at least 25 basis points

Loans

UniCredit Bank offers its clients short, medium and loang term loan services adjusted to their business needs, in both domestic and foreign currencies.

A working capital loan is a loan with a borrowing limit that is provided to the Company, usually for a period of up to one year, for the purpose of financing of short term working capital needs.
A working capital loan can be either revolving or non revolving and committed or uncommitted loan.

Revolving loan allows a company flexibility to borrow funds when the need arises for the exact amount required up to approved limit, and to repay in the case of cash excess. Interest is paid only on the amount borrowed, typically on a monthly basis.
In the case of non revolving loan the company can draw full available limit which is repaid usually in equal monthly installments till expiry of loan maturity.

In the case of committed line the Bank has future obligation to provide approved loan amount, should the Borrower request it, until the expiry of the Loan and under conditions specified in the Loan agreement. Uncommitted line, provides that the Bank has no future obligation to provide full loan amount.

Multipurpose line

Multipurpose line is financing instument by whcih the Bank provides Company with a borrowing limit usually for a period of up to one year, for the purpose of financing of working capital needs. Approved limit can be used in form of the loan but aloso for trade finance instruments i.e. Guarantees, Letters of credit, Letters of intent.

Main purpose of multipurpose line is to provide flexible financing instrument that supports Company in financing working capital needs.

Overdraft

Overdraft is allows companies to perform financial obligations regardless of available funds in the current account but within approved limits. Overdraft is repaid form cash inflows to Clients account. Interest is charged only during the utilization period, on utilized balance.
Overdraft limit is provided only in the local currency for a period of one year with a possibility for prolongation each year subject to business performance.
Overdraft limit is usually provided on unsecured basis.

Investment loan is type of financing, used for the financing of specific investment needs – capital expenditure of the Company. Realization of a specific investment is conducted within existing Company which usually participates in the investment financing.

The basis for a loan financing is the expected cash flow of the investment supported by existing business performance providing ability of the client to repay the loan over the agreed period.

The tenor of the cash flows generated by the underlying investment financing should match payment maturities under the credit facility. Specifically, in case of loans granted to finance fixed assets, the tenor of the credit line must not exceed the average amortization period of the underlying asset or the expected economic life of the assets.

As a general rule, credit facilities granted to finance capital expenditure shall be:

Supported by a security over the relevant asset
Granted only on the base of conservative business plans
Supported by the provision of financial covenants in the relevant loan contract and
Requiring a borrower participation with certain percentage of own funds of the total investment project costs

A Syndicated Loan is a type of financing provided by two or more lenders to a borrower or a related group of borrowers under a common set of legal documents. The group of lenders is known as the Syndicate. It therefore differs from the case where the borrower has several individual loan facilities from different banks, all of which are governed by separate loan agreements (bilateral).

Syndicated loans are originated and structured by one or more banks known as Mandated Lead Arrangers (MLA). The loan is then sold to investors by the Book runner(s). Lenders in the Syndicate are required to undertake their own due diligence. They may not legally rely on the due diligence carried out by the MLA(s), and have no recourse to the MLA(s).

The following terms are applicable with respect to such loans

Mandated Lead Arranger (MLA): one or more financial institution responsible for initiating and
structuring the transaction, negotiating the legal documentation between the borrower and lenders and the primary distribution of the credit facility.
Bookrunner(s): Financial institutions responsible for executing and managing the sell down /
Syndication process.
Participants: banks and/or institutional investors that take a share of the risk in a syndicated
loan, regardless of whether such participation occurs through a legal assignment or risk participation;
Syndicate: comprises all lenders which have taken a share of the risk in a syndicated loan;
Syndication: the distribution of risk among potential investors
General Syndication: involves the process of syndicating on a best efforts basis or an underwritten basis. It ends with the signing of the Syndication Agreements by the borrower and participating lenders (including MLAs and Underwriter(s),
Secondary sell down: the process of selling part of the loan once the primary syndication has been completed and allocations have been made to participants

Elements of a Syndicated Loan

Credit Approved Underwriting Amount: portion of the syndicated loan that UCG is willing to underwrite. It comprises the sum of the Credit Approved Final Take and the Syndication Amount (as defined below).
Credit Approved Final Take: the amount UCG accepts to take and hold on its own books.
Syndication Amount: represents the amount of the syndicated loan UCG wishes to sell down in the primary market. It is equal to Credit Approved Underwriting Amount less the Credit Approved Final Take.

Qualified investments in energy efficiency investments that contribute to the improvement of the energy performance of buildings and industrial sectors, which are consistent with at least one of the following criteria:

ESR (Energy Saving Ratio) equal to or greater than 30% in the buildings sector, measured on an annual basis, with the same elements
ESR equal to or greater than 20% in all other cases, measured on an annual basis, with the same elements
Reduce greenhouse gas emissions, reducing greenhouse gas emissions measured in equivalent tons of CO2 is equal to or greater than 20%, measured on an annual basis with the same elements
If the current national minimum requirements are stricter than above, than national requirements should be applied