Release date: 19 May 2022
Promoter – Financial Intermediary
MAGYAR EXPORT-IMPORT BANK ZRTLocation
Description
The proposed operation is to support the Green Financing Framework of Hungarian Eximbank and to provide funding for eligible projects of small and medium-sized enterprises (SMEs), mid-caps and other corporates.
Additionality and Impact
Dedicated EIB loan to finance investments promoted by small and medium-sized enterprises (SMEs) (50%)and Mid-Caps (20%) operating in different sectors in Hungary. The additional 30% of the facility will be dedicated to eligible projects of corporates aimed at promoting Climate Action and Environmental Sustainability. Overall, the operation targets 50% CAES contribution. A significant part of the operation allocations will take place in convergence areas (85%).
The Intermediary has demonstrated a satisfactory general understanding of the Bank's eligibility criteria, and is currently developing procedures and expertise to ensure it can implement them.
The considerable financial value added and long tenor can facilitate the implementation of the Intermediary's green programme and the Bank participation can signal toward the market that the green strategy of borrower is sound and worth of support.
EIB participation will contribute to the diversification of the borrower's financing base in terms of maturity, while interest rate conversion and fixing possibilities are also unique compared to other financing sources.
Objectives
The Bank's funding will be used to finance eligible investments of SMEs, mid-caps and large corporates having significant climate action components.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
- Transport - Transportation and storage
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 100 million
Total cost (Approximate amount)
not applicable
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 22/11/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).