EUR 11.4 million syndicated loan to ProCredit Bank Romania from E.B.R.D
Bucharest, February 6th, 2012
ProCredit Bank Romania received a €11.4 million syndicated loan from EBRD, continuing to support the availability of financing to the real economy sector.
Structured under the EBRD’s A/B loan scheme, the facility includes a €8.4 million “A” loan, of which €5 million for the EBRD’s account and the additional €3.4 million was provided by the International Cooperation and Development Fund (ICDF) Taiwan. The €3 million “B” loan portion of the loan was syndicated to responsAbility SICAV (Lux) Financial Inclusion Fund and responsAbility SICAV (Lux) Mikrofinanz-Fonds.
ProCredit Bank Romania is addressing specifically the financial needs of very small, small and medium-sized enterprises, providing universal banking services to small companies, including enterprises in the agricultural sector. ProCredit Bank will use the loan for on-lending to local entrepreneurs across the country working in production, services, trade or agriculture sectors. The project will support the development of ProCredit Bank’s loan portfolio, helping the institution to overcome the impact of the current economic challenges.
“The project will increase availability of medium-term funding for Romanian small and medium enterprises and will support ProCredit Bank in maintaining the flow of credit to local companies. This is the second syndication in Romania’s financial sector since the crisis, and the first to a bank dedicated to small business financing. The transaction is reviving access to international debt capital markets by encouraging private lenders to provide funding to banks based in Romania,” said Claudia Pendred, EBRD Director for Romania.
“We are confident that the new loans will positively impact our activity on the Romanian market, and will bring additional financial support to the very small, small and medium-sized enterprises we are serving. ProCredit Bank Romania is able to identify market opportunities and potential for businesses in some economic sectors, such as production and agriculture; and as such, we will make it a priority to strengthen our lending capacity and continue our development mission in the country,” said Andreea Enache, Business Clients Division Director, ProCredit Bank Romania.