Financed ProjectsBulgarian American Credit Bank II

Identification Code:

OP/07/0692

Total Operation Cost:

0

Maturity:

12 months

Operation Status:

Description and Purpose of the Operation:

"The proceeds of the Facility are used by the Bulgarian-American Credit Bank exclusively for the purpose of financing sub-loans to eligible micro, small and medium sized companies in Bulgaria. This Facility is a continuation of cooperation with BACB starting back in 2003 with a credit line successfully completed in 2006. BACB is specialized in lending to Bulgarian small and medium-sized enterprises. The bank’s financial performance is robust and it benefits from strong shareholder support."

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

Trade Finance

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Bulgarian-American Credit Bank (BACB) is established and owned by the Bulgarian American Enterprise Fund (BAEF). Since 1996 BACB has been amongst the very few sources of finance to SMEs in Bulgaria. BACB is recognized as a nich bank specialized in lending to Bulgarian small and medium-sized enterprises. The bank’s financial performance is robust and it benefits from strong shareholder support.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The SME Loan Facility will enhance the financing options for small and medium-sized companies in Bulgaria. The Project is expected to have favourable economic benefits for the Bulgarian economy, the most relevant being the tax revenue gains from economic activity, increase in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy.

Environmental Classification and Impact (summary):

Financing through FIs implies certain Environmental, Health & Safety (EH&S) risks and impacts. Usually these are associated with the fact that FIs lack appropriate environmental policies and procedures, which would ensure a qualitative EH&S assessment of the sub-loans, and therefore their legal compliance with local and lending institutions’ requirement. The Borrower needs to develop an appropriate Environmental Policy and Environmental Assessment Procedures and fully integrate them in the overall portfolio management. The LA requires the Borrower to: - undertake environmental assessment of the sub-loans with medium and high environmental risk, as well as ensure proper monitoring of these operations; - ensure compliance of the sub-loans with applicable national EH&S requirements; - continue to adhere to the Bank’s Environmental Exclusion List and Negative List of Goods; - submit annual EH&S performance reports.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org