Release date: 7 June 2022
Promoter – Financial Intermediary
BRD SOGELEASE IFN SALocation
Description
Dedicated loan to finance eligible small and medium-sized investments promoted by small and medium-sized enterprises (SMEs) and mid-caps in Romania.
Additionality and Impact
Operation aims to help mitigate market failure of SME and Midcaps' insufficient access to long term funding for their investments at low financing costs.
By addressing these market gaps, which are more acute in Romania compared to EU average, project in particular supports strengthening of EU's economic, social and territorial cohesion (85% expected to be implemented in cohesion regions) and it also mitigates gap in financing for small to mid-size Climate Action & Environmental Sustainability projects with a 20% green window.
Small size of SMEs makes them more vulnerable to economic cycles and more constrained in opportunities for growth. Leasing as a method of financing offers various advantages for SMEs compared to traditional bank loans. Among others, leasing facilitates access to finance for companies with limited access to bank lending and new/young enterprises without credit track record and with limited collateral to provide.
Most important contributions of EIB loan will be: long term funding in local currency, diversification of external funding, signalling effect for other financiers to provide similar long-term loans to Borrower, and availability of EIB Green Eligibility Checker which could contribute to capacity building at Intermediary.
Objectives
Dedicated loan to finance eligible small and medium-sized investments promoted by SMEs and mid-caps in Romania.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 50 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 - 27/07/2022
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).