The World Bank Implementation Status & Results Report Catalyzing Long Term Finance through Capital Markets (P176069) Catalyzing Long Term Finance through Capital Markets (P176069) EUROPE AND CENTRAL ASIA | Serbia | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2023 | Seq No: 2 | ARCHIVED on 06-Nov-2023 | ISR58392 | Implementing Agencies: Ministry of Finance, Republic of Serbia Key Dates Key Project Dates Bank Approval Date: 16-Mar-2023 Effectiveness Date: 28-Aug-2023 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 31-Aug-2028 Revised Closing Date: 31-Aug-2028 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project’s overall objective is to (i) improve the enabling environment for capital markets development and (ii) deepen the corporate bond market, including through green and other thematic issuances. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Institutional, Legal and Regulatory Reforms:(Cost $20.00 M) Component 2: Corporate Bond Issuer Program:(Cost $10.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Project performance. The progress towards the achievement of the PDO and Implementation Progress is rated as Satisfactory. The Project is in the process of hiring the relevant Project Implementation staff. The MoF has hired staff in the Capital Markets Policy and Regulatory Unit and is in the processing of hiring the overall CM Loan Project Manager and the E&S Specialist. Subsequently, when these staff are in place, the MoF intends to identify the Task Force members and start the procurement process for the CBIP. 11/6/2023 Page 1 of 7 The World Bank Implementation Status & Results Report Catalyzing Long Term Finance through Capital Markets (P176069) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improve the enabling environment for capital markets development IN01357553 ►Compliance achieved in the focus areas identified by the assessment of implementation of IOSCO Objectives and Principles of Securities Regulation (Yes/No, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Dec-2022 31-May-2023 25-Sep-2023 31-Aug-2028 Focus areas of improvement will be identified in the IOSCO Assessment of recommendations. Comments: Compliance means at minimum 75 percent of the focus areas have been addressed and are considered either fully or broadly implemented based on the international standards. Deepen the corporate bond market IN01357554 ►Number of corporate bond issuances by first-time issuers (Number, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12.00 Date 01-Dec-2022 31-May-2023 25-Sep-2023 31-Aug-2028 11/6/2023 Page 2 of 7 The World Bank Implementation Status & Results Report Catalyzing Long Term Finance through Capital Markets (P176069) This PDO indicator will measure the number of corporate bonds issued by first time issuers between Comments: 2023-2028 with the support of the Corporate Bond Issuer Program. Increase green/thematic corporate bond issuances IN01357555 ►Number of green and other thematic corporate bond issuances (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 01-Dec-2022 31-May-2023 25-Sep-2023 31-Aug-2028 The PDO Indicator will measure the number of green and other thematic corporate bonds issued under Comments: the Corporate Bond Issuer Program. Intermediate Results Indicators by Components Component 1: Institutional, Legal and Regulatory Reforms IN01357566 ►One-stop shop established with interactive web portal (Yes/No, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Mar-2023 31-May-2023 25-Sep-2023 31-Aug-2028 This intermediate indicator will monitor whether the one-stop shop has been created by the GoS Comments: authorities. IN01357568 The number of site visits by unique IP addresses (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 500.00 IN01357570 ►Simplified tax framework in place for capital market development (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Mar-2023 31-May-2023 25-Sep-2023 31-Aug-2028 In November 2022, the Ministry of Finance completed a capital market taxation framework analysis. Comments: Subsequent to the tax analysis the aim is to have simplified tax framework in place for capital market development. IN01357573 ►Time-bound action plan adopted for resolving the issue of dormant accounts (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 11/6/2023 Page 3 of 7 The World Bank Implementation Status & Results Report Catalyzing Long Term Finance through Capital Markets (P176069) Value No No No Yes Date 31-Mar-2023 31-May-2023 25-Sep-2023 31-Aug-2028 The intermediate indicator will monitor whether a time-bound action plan that addresses the issue of Comments: dormant accounts has been adopted. Component 2: Corporate Bond Issuer Program IN01357567 ►Number of companies participating in the Corporate Bond Issuer Program, including the number of women managers participating in the Corporate Bond Issuer Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 31-Mar-2023 31-May-2023 25-Sep-2023 31-Aug-2028 The indicator will count the total number of companies admitted to and participating in the Corporate Bond Comments: Issuer Program, including the number of women managers participating in the Corporate Bond Issuer Program. IN01357569 The number of women managers participating in the Corporate Bond Issuer Program. (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 31-Mar-2023 31-May-2023 25-Sep-2023 31-Aug-2028 IN01357571 ►Total volume of corporate bond issuances, including volume of green and other thematic bonds (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30,000,000.00 Date 31-Mar-2023 31-May-2023 25-Sep-2023 31-Aug-2028 The intermediate indicator will capture the total volume of corporate bonds issued, including Comments: green/thematic bonds. The volume is in USD. IN01357572 ►Total number of corporate bond issuances, including total number of green and other thematic bonds (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Mar-2023 31-May-2023 25-Sep-2023 31-Aug-2028 The total number of corporate bond issuances, including total number of green and other thematic bonds Comments: will be captured. This number will count each time a bond is issued within the CBIP. IN01357574 ►Volume of corporate bonds issued by majority women-owned firms (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 11/6/2023 Page 4 of 7 The World Bank Implementation Status & Results Report Catalyzing Long Term Finance through Capital Markets (P176069) Value 0.00 0.00 0.00 20,000,000.00 Date 31-Mar-2023 31-May-2023 25-Sep-2023 31-Aug-2028 This intermediate indicator will capture the number of corporate bonds issued by majority women-owned Comments: firms, defined as firms with at least 51 percent corporate ownership by women. The volume is in RSD. IN01357575 ►Number of corporates that received financial education/were informed about alternatives to bank financing (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 31-Mar-2023 31-May-2023 25-Sep-2023 31-Aug-2028 The intermediate indicator will measure the increasing awareness of Serbian corporates regarding the Comments: benefits of alternative corporate debt financing, beyond bank financing. IN01357576 ►Share of Corporate Bond Program beneficiaries satisfied with the Corporate Bond Program support via periodic surveys (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 31-Mar-2023 31-May-2023 25-Sep-2023 31-Aug-2028 The intermediate indicator will measure the share of Corporate Bond Program beneficiaries satisfied with the Corporate Bond Program support via periodic surveys. It is intended to measure beneficiary Comments: satisfaction and effectiveness of the engagement processes and to capture the WB corporate commitment of citizen engagement. Performance-Based Conditions IN01357577 ►PBC 1 Compliance achieved in the focus areas identified by the assessment of implementation of IOSCO Objectives and Principles of Securities Regulation (Yes/No, Intermediate Outcome, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 2028 Value No No No -- Date -- 31-May-2023 25-Sep-2023 -- IN01357578 ►PBC 2 Upgrade BELEX’s ICT system (both hardware and software), including by developing a new website to promote and facilitate trading of securities listed on the stock exchange, to facilitate connection (Yes/No, Intermediate Outcome, 3,500,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 2028 Value No No No Yes 11/6/2023 Page 5 of 7 The World Bank Implementation Status & Results Report Catalyzing Long Term Finance through Capital Markets (P176069) Date -- 31-May-2023 25-Sep-2023 -- IN01357579 ►PBC 3 One-stop shop established with interactive web portal (Yes/No, Output, 5,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 2028 Value No No No -- Date -- 31-May-2023 25-Sep-2023 -- IN01357580 ►PBC 4 Number of corporate bond issuances by first-time issuers (Number, Output, 500,000.00, 1.00%) Baseline Actual (Previous) Actual (Current) 2028 Value 0.00 0.00 0.00 -- Date -- 31-May-2023 25-Sep-2023 -- IN01357581 ►PBC 5 Number of corporate bond issuances by first-time issuers (Number, Outcome, 4,500,000.00, 9.00%) Baseline Actual (Previous) Actual (Current) 2028 Value 0.00 0.00 0.00 -- Date -- 31-May-2023 25-Sep-2023 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P176069 IBRD-94850 Effective USD 30.00 30.00 0.00 0.81 29.17 2.7% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P176069 IBRD-94850 Effective 16-Mar-2023 10-Apr-2023 28-Aug-2023 31-Aug-2028 31-Aug-2028 11/6/2023 Page 6 of 7 The World Bank Implementation Status & Results Report Catalyzing Long Term Finance through Capital Markets (P176069) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/6/2023 Page 7 of 7