Release date: 20 April 2023
Promoter – Financial Intermediary
PROCREDIT BANK (BULGARIA) ADLocation
Description
The project consists in an EIB Group's guarantee covering an existing portfolio of loans and leases targeting small and medium sized enterprises (SMEs) and Midcaps. The operation will enable ProCredit Bank Bulgaria to further expand its lending to the target beneficiaries, including those implementing projects that support green objectives.
Additionality and Impact
The project contributes to the Bank's lending priority objectives on SMEs, as well as on climate action (transversal). Through an intermediated approach, the Bank will reach SMEs and MidCaps financing small and mid-size projects, which could otherwise not be reached. In addition, the operation supports the financial intermediary's sustainability strategy, increasing its lending in the sector and diversifying its funding sources. The project addresses a number of market failures: From the continuously existing and further widening financing gap stemming from higher interest rates for SMes, the gap in long tenor financing for Climate Action projects. EIB is providing adequate financing sources in terms of pricing and longer maturities. The EIB's contribution will be most visible on the financial contribution side by accelerating the fundraising and crowding in other financiers.
Objectives
The aim is to increase availability of finance for projects carried out by SMEs and Midcaps operating in the industry and services sector. This operation will also contribute to mitigate the negative economic effects of the pandemic and significant part of the financed sub-projects will be dedicated to tackling climate change.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 140 million
Total cost (Approximate amount)
EUR 348 million
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 - 21/06/2023
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).