Financed ProjectsProcredit Bank Bulgaria

Identification Code:

OP/02/0321

Total Operation Cost:

0

Maturity:

114 months

Operation Status:

Description and Purpose of the Operation:

BSTDB extends the medium-term Micro and SME Loan Facility to Procredit Bank Bulgaria with the amount of EUR 14.5 million to finance sub-loans offered to micro, small and medium-sized enterprises in Bulgaria and to accommodate their growing needs for business development. The credit line extension is a result of the good cooperation with Procredit Bank Bulgaria, starting back in 2003, when the first SME credit line for the amount of EUR 6 million was granted by BSTDB and has been gradually increased since then. With the new increase of the credit line, the total BSTDB financing made available to ProCredit Bank Bulgaria for financing micro, small and medium enterprises reached EUR 29 million.

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

ProCredit Bank Bulgaria (PCB) was established in 2001 and received a full banking license from the National Bank of Bulgaria. PCB is owned by ProCredit Holding (established by, among others, IFC, KfW (Germany) and FMO (The Netherlands)) and Commerzbank (Germany). It aims at supporting the development of the private SMEs in Bulgaria, by improving their access to finance. Procredit Bank Bulgaria is part of the worldwide network of 21 ProCredit banks established by ProCredit Holding and its partners in Eastern Europe, Latin America and Africa.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The operation has high development impact by improving access to finance of micro, small and medium-sized businesses. It is expected to support the efforts of a solid client, specialized in lending to SMEs, to increase its market share in SME finance in Bulgaria.

Environmental Classification and Impact (summary):

BSTDB’s prior experience with the Borrower proved that PCB is a credible entity in dealing with EH&S issues of its sub-loans. Its well- established environmental policy is supported by a functioning environmental procedure, and is fully integrated in the overall portfolio management.

Operation Leader:

General Industries, Transport, Tourism 2

E-mail:

gitt2@bstdb.org