Financed ProjectsProcredit Bank Bulgaria

Identification Code:

OP/17/0043

Total Operation Cost:

20.000.000

Maturity:

12 months

Operation Status:

Description and Purpose of the Operation:

Procredit Bank Bulgaria

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Procredit Bank, Bulgaria, SME Finance Facility

Co-Financiers/Participants:

N/A

Guarantors/Sponsors:

N/A

Developmental and Regional Cooperation Impact:

The operation involves a loan for on-lending to small and medium sized enterprises (SMEs) that is expected to have modest but favorable economic benefits for the Bulgarian economy. The most relevant of these is the additional tax revenue gains from increased economic activity resulting from the financing provided. In addition, the financing will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is likely to be very minor but positive. The operation is consistent with sector and operation priorities outlined in BSTDB's Medium Term Strategy and Business Plan 2015-18 and the Country Strategy for Bulgaria 2015-2018.

Environmental Classification and Impact (summary):

ProCredit Bank Bulgaria has been a long standing partner of BSTDB and the accumulated experience in terms of environmental and social (E&S) performance has always been positive. ProCredit Bank Bulgaria abides to the group's E&S corporate requirements consisting of policy and procedural documents, which are applied across all ProCredit's subsidiaries, and are fully compliant with the BSTDB's requirements for Financial Intermediaries. Monitoring of E&S performance of previous operations concluded that the E&S management system is well integrated into the overall portfolio management, and that sub-projects of medium and high E&S risks categories are adequately assessed and monitored. The Loan Agreement will include BSTDB's standard E&S covenants for SME lines. For the purpose of this operation no other E&S assessment is considered necessary.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org