Financed ProjectsBM Leasing SME 3

Identification Code:

OP/14/0004

Total Operation Cost:

0

Maturity:

60 months

Operation Status:

Description and Purpose of the Operation:

BM Leasing SME 3

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

The EUR 3 million medium-term SME Facility to support BM Leasing activities in financing eligible SMEs in Bulgaria.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The operation with BM Leasing is expected to have modest but favorable economic benefits for the Bulgarian economy, the most relevant being additional tax revenue gains from increased economic activity under the amount provided. In addition, the additional amount provided will help further enhance benefits such as increases in employment and competitiveness, and multiplier effects for other parts of the economy. Strengthening the non-banking financial sector in the Member Country is also beneficial. The regional cooperation element is similarly expected to be fairly limited. Other BSTDB countries are important trade partners for Bulgaria so to the extent SMEs benefiting from financing from the operation engage in export activities, there will be regional cooperation benefits.

Environmental Classification and Impact (summary):

BM Leasing is engaged in SME leasing in Bulgaria by providing its clients lease financing. SME leasing is normally not likely to generate significant negative environmental and social impact. Nevertheless, there are certain environmental and social risks associated with such financing for which the FI needs to have the appropriate capability to ensure that these risks are properly assessed and mitigated. The Environmental and Social Assessment of BM Leasing focused primarily on the existing environmental and social management arrangements, such as policies, procedures, rules and responsibilities, and whether the company is engaged in activities prohibited by the Bank as stipulated in the BSTDB Environmental and Social Exclusion List. The assessment concluded that BM Leasing has instituted a functioning environmental and social management system which was found commensurable with the level of environmental and social risks associated with its SME financing activities. The Company reported that it is not engaged in financing any activities contained in the Bank's Environmental and Social Exclusion List. Overall, it is considered that the Operation will contribute to promoting small and medium businesses in Bulgaria and positively impact on poverty alleviation, stimulate self employment, create new jobs and generate revenues. For the purpose of this Operation BM Leasing will be required to continue to adhere to the established internal rules and procedures for environmental and social risk assessment; remain compliant with subject national legislation in effect; observe the BSTDB Environmental and Social Exclusion List; and submit annual environmental and social performance reports.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org