Financed ProjectsBulgarian Development Bank SME I

Identification Code:

OP/09/0744

Total Operation Cost:

0

Maturity:

60 months

Operation Status:

Description and Purpose of the Operation:

The proceeds of the Facility are used by the Bulgarian Development Bank exclusively for the purpose of financing sub-loans to eligible micro, small and medium sized companies in Bulgaria (Beneficiaries), with the following purposes: (a) medium-term financing of specific projects or investment programmes for the creation, modernisation, expansion and diversification of industrial, production, agricultural or service- related facilities, provided that the proceeds of the Loan shall not be used to finance more than 50% of the overall cost of any specific project or investment; (b) short and medium-term working capital financing for production or service-related purposes and medium-term incremental or start-up working capital requirements for specific projects or investment programmes; (c) export and pre-export financing of industrial or agricultural enterprises manufacturing for export and producing hard currency revenues.

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Public

Borrower/Client:

"Bulgarian Development Bank was established after the adoption of a special law by the Parliament of the Republic of Bulgaria in April 2008. The financial institution is a successor of Encouragement Bank. The mission of the Bulgarian Development Bank is to support the development of the Bulgarian economy by promoting export and supporting the implementation of the economic policy of the government in terms of micro, small and medium-sized enterprises, either directly or through on-lending. BSTDB has successfully cooperated with Encouragement Bank under a trade finance facility in the past.

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 in a constraint credit environment at times of crisis. This suggests that there will be real demand for BDB financing. 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):

The Borrower is required to develop an appropriate Environmental Policy and Environmental Assessment Procedures and fully integrate them in the overall portfolio management. It is also required 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; and submit annual EH&S performance reports.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org