Enhancing a Green Loan Product and Support on Client Acquisition Strategy

Publikuar: 04-03-2024
Skadon: 13-03-2024

Ky konkurs ka skaduar

Kompani USAID Kosovo Investment Promotion and Access to Finance Activity

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Numri i pozitave 1

Vendi i punës Prishtinë

Shikime 1233

USAID Kosovo Investment Promotion and Access to Finance Activity

Scope of Work

Enhancing a Green Loan Product and Support on Client Acquisition Strategy

Activity background

DT Global is a fast-growing international development company that focuses on improving the capability, capacity, and effectiveness of development programming in complex global environments. DT Global has been awarded the 5-year USAID-funded Investment Promotion and Access to Finance Activity in Kosovo (hereinafter “Activity”). The Activity aims to strengthen the private sector’s capacity to deliver sustainable economic growth through two mutually reenforcing objectives: 1) attracting and promoting investment; and 2) increasing access and utilization of diversified finance. By achieving these two objectives, the Activity aims to strengthen the resiliency of the private sector, create productive jobs, increase exports, and enable firms to adopt new technologies and business practices.

Assignment background

Despite Kosovo commercials banks introducing green loans over time, the share of such loans to banks’ overall lending portfolios is still relatively limited. Green loan instruments have the potential to attract a growing segment of customers who are more likely to prioritize sustainability in their financial decisions. This enables banks to tap into a market that is increasingly conscious of environmental and social challenges. Offering green loan instruments encourages financial innovation within a bank and provides an opportunity to develop new financial products that align with sustainability principles, allowing banks to differentiate themselves in the market.

To that effect, the Activity is partnering with a local bank to develop a green lending facility with enhanced features that will support financing environmentally sustainable projects or initiatives, thus expanding the availability of green financing products in Kosovo’s financial market. The anticipated green loan instrument will target businesses interested in the financing of renewable energy projects, energy efficiency improvements, or sustainable infrastructure and targeting sectors on renewable energy, green buildings, sustainable agriculture and/or other areas contributing to environmental sustainability. The support from the Activity in introducing a new financial product is expected to enable the partner bank two-folds: (i) leveraging the bank's database to identify acquisition targets that have a focus on green or environmentally sustainable initiatives; and (ii) tap into credit lines from various financial sources including from international financial institutions, enabling an expansion of financing of green projects.

The Activity’s involvement is part of its broader effort to partner with financial institutions in an effort to expand diversified finance products. In this specific case, the Activity will support a partner bank with technical assistance to enhance a green loan instrument, develop policies and procedures in line with regulatory guidance and the bank’s business strategy, as well as its internal processes for issuing this type of financial instrument.

Against this backdrop, the Activity is seeking to engage a Short-Term Technical Assistance (STTA) consultant who will work with the partner bank to enhance the green loan instrument and comprehensive policies and procedures for the effective issuance of green loans, including implementing an acquisition strategy with new clients. The expert will be responsible for analyzing the existing business plan of the partner bank by considering the economic viability of green loan instrument, designing/enhancing the green loan instrument, and developing internal policies and procedures and training programs for internal staff to ensure a clear understanding of the green loan instrument, policies, and procedures.

Name of Position	Short-Term Expert to Enhance a Green Loan Instrument and Develop Client Acquisition Strategy (hereinafter “Expert”)
General Responsibilities	The general responsibilities of the Expert include: Conduct in-depth research on green finance principles, sustainable banking practices, and relevant environmental regulations. Analyze existing green loan instruments and policies to understand best practices and compliance requirements. Engage with partner bank’s relevant personnel (i.e., the product development department) to understand organizational goals and constraints. Collaborate with relevant external stakeholders, such as environmental experts and sustainability organizations, to incorporate diverse perspectives. Design/enhance the green loan instrument which is to be aligned the partner bank’s overall sustainability strategy and in compliance with environmental laws. Develop comprehensive policies governing the green loan program, covering eligibility criteria, use of loan proceeds, monitoring, reporting, and impact assessment. Ensure policies adhere to international green finance standards and regulations. Develop training programs for internal staff to ensure a clear understanding of the green loan instrument, policies, and procedures.
Specific Tasks and Responsibilities	The specific tasks of the Expert include: Conduct a thorough analysis of the partner bank’s current financial products, policies, and practices with relevance to green financing. Screen the bank’s clients (previous/existing borrowers/companies) based on their environmental practices, sustainability initiatives, or involvement in green industries such as renewable energy, clean technology, or eco-friendly manufacturing to enable an effective acquisition strategy. Evaluate the partner bank’s sustainability goals. Research international and industry-specific green finance standards and best practices. Benchmark against existing green loan instruments and policies to identify key features and successful models. Consult external stakeholders, such as environmental experts, non-governmental organizations, and sustainability organizations, to incorporate diverse perspectives. Design/enhance the green loan instrument outlining specific environmental and sustainability objectives that the green loan instrument aims to achieve. Develop comprehensive policies that govern the green loan program, including: eligibility criteria for green projects, use of loan proceeds for environmentally beneficial purposes, monitoring and reporting requirements for borrowers, criteria for green certification and verification, etc. Develop detailed procedures for implementing and managing green loans, covering: application and approval processes, due diligence on green project eligibility, monitoring and reporting mechanisms, and verification and auditing processes. Ensure the green loan instrument and associated policies and procedures align with local and international regulatory requirements. Develop training program and provide capacity-building for internal staff to ensure a clear understanding of the green loan instrument, policies, and procedures.
Key Deliverables	Deliverable	Percentage of payment
	Initial analysis report outlining an overview of the green finance principles, sustainable banking practices, and existing green loan instruments and policies, as well as an assessment of the bank’s sustainability goals, and economic viability of the green loan instrument (as outlined under tasks 1 to 5 in the specific tasks and responsibilities section).	20%
	Initial analysis of potential acquisition targets that have a focus on green or environmentally sustainable initiatives. This could involve due diligence on potential acquisition targets (relevant analysis of potential clients to be supported for green lending that may include energy efficiency, waste management, carbon footprint, use of renewable resources) (Task 2).	15%
	Draft a green loan instrument package that includes a comprehensive set of documents, policies, procedures, and tools designed to facilitate the implementation of a green loan program within the partner bank. This package ensures that the bank has all the necessary tools and guidelines to initiate, implement, and manage its green loan program successfully. This provides a structured framework for offering loans specifically designated for environmentally beneficial projects. It promotes environmental sustainability while adhering to industry best practices and regulatory requirements (this milestone is linked to tasks 6 to 9 in the specific tasks and responsibilities section).	15%
	Presentation of the draft green loan instrument package to the internal decision-making personnel of the bank.	10%
	Provide training program to increase capacities of bank staff on the details of the green loan instrument, policies, and procedures (as outlined under task 11 in the specific tasks and responsibilities section).	20%
	Final green loan instrument submitted to partner bank and the Activity, which reflects feedback from bank internal stakeholders and the Activity team. This deliverable will be finalized upon completion of the tasks from 1-11.	20%
Minimum Education Requirements	University degree in a relevant field.
Minimum Professional Experience	Extensive experience in legal and regulatory frameworks related to financial industry. A strong understanding of the financial industry, particularly green loan instruments. In-depth knowledge of EU and international best practices and standards for lending practices, including the overarching principles and objectives of the green loan program. Familiarity with banking operations, loan issuance, and relevant regulatory framework related green finance principles, sustainable banking practices, and relevant environmental regulations. Familiarity with the environmental laws of Kosovo or similar jurisdictions. Strong research, analytical, and drafting skills, including verbal and written communications skills. Strong interpersonal skills, ability to work independently and in a team. High attention to detail; good organization and prioritization skills. Proven experience with MS office applications. Fluency in English.
Period of Performance	March 2024 – May 2024
Contracting Mechanism	DT Global anticipates issuing a fixed-price contract. The selected consultant will be remunerated based on the submission and approval of the key deliverables outlined above.
Supervisor	Diversified Finance Lead and Legal and Regulatory Reform Lead.
Supervisory Role	None.
Travel Requirements	Travel is not anticipated as DT Global expects to engage a local consultant to complete this scope of work.
Selection Criteria	Consultants’ applications will be evaluated against the following criteria: Previous experience completing assignments of similar size and scope. Depth of demonstrated expertise in legal and regulatory frameworks in Kosovo related to financial industry. Level of knowledge of EU and international best practices and standards for lending practices, including the overarching principles and objectives of the green loan program. Level of demonstrated knowledge in banking operations, loan issuance, and relevant regulatory framework related green finance principles, sustainable banking practices, and relevant environmental regulations. Exceptional communication skills, both written and verbal, with the ability to convey complex capital markets and corporate securities concepts to diverse stakeholders including public authorities.
Application Instructions: DT Global is accepting applications from individual consultants to complete the above scope of work. Individuals will be engaged through a fixed price consulting agreement. To apply please submit a CV and proposed cost proposal in English to [email protected] The cost proposal must include all anticipated costs, including level of effort (LOE), and materials required to complete the above scope of work. Applicants are encouraged to use the budget template provided in Annex A. Please include the position you are applying for in the email subject line. Application deadline is March 13, 2024. We thank all applicants for their interest. Only short-listed candidates will be contacted. DT Global, LLC is an Equal Opportunity Employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, veteran status, gender identity, or national origin. DT Global, LLC prohibits discriminating against employees and job applicants who inquire about, discuss, or disclose the compensation of the employee or applicant or another employee or applicant.