ProCredit Bank signs the expansion of the InnovFin Agreement
The European Investment Fund (EIF) and the ProCredit group have signed an expansion of the InnovFin umbrella agreement, which entails providing an additional EUR 450 million to innovative small and medium-sized enterprises (SMEs), bringing the total amount of funds made available to companies in eleven countries in which ProCredit operates, including Romania, to EUR 820 million. The EIF-backed financing, which has been available through ProCredit Bank since January 2016, has therefore been doubled from EUR 40 million to EUR 80 million. Companies that use new technologies, produce new products and invest in the innovation of their business are eligible to receive these funds until January 2021.
The agreement was signed under the European Commission’s InnovFin initiative, is backed by the EU’s research and innovation programme, Horizon 2020, and is supported by the European Fund for Strategic Investments (EFSI). The EFSI is the central pillar of the European Commission’s Investment Plan for Europe, also known as the Junker Plan. The InnovFin initiative enables ProCredit Bank to further provide lending facilities to innovative companies with a 50% guarantee provided by the EIF. To date, ProCredit Bank has provided support totalling EUR 25 million to more than 100 innovative SMEs, thus contributing to the development and strengthening of the competitive advantage of these businesses. The bank aims to enable many more companies to benefit from this financing under advantageous conditions in the coming years.
The InnovFin SME Guarantee Facility was established under the EU InnovFin Finance for Innovators initiative developed under Horizon 2020, the EU Framework Programme for research and Innovation. It provides guarantees and counter-guarantees on debt financing between EUR 25,000 and EUR 7.5 million, in order to improve access to loan financing for innovative small and medium-sized enterprises and small mid-caps (up to 499 employees). The facility is managed by the EIF and is rolled out through financial intermediaries – banks and other financial institutions – in EU member states and associated countries. Under this facility, financial intermediaries are guaranteed against a proportion of their losses incurred on the debt financing covered under the facility by the EU and EIF.
“Our extended expertise in providing banking services for SMEs in general and in the financing of these companies in particular, has made us a reliable partner of the European financial institutions. Under this partnership and because of our role as a Hausbank among a significant number of innovation-driven SMEs, we support and stimulate innovative ideas and investments, enabling our clients to grow their competitive advantage in the market. Development which is also our institutional focus is what we actually aim to encourage SMEs to invest in. The expansion of the InnovFin agreement comes as a result of an increased interest on the part of the companies in the modernisation of their businesses, as they are aware that innovation is often the aspect which makes the difference in the market”, said Mariyana Petkova, Deputy General Manager of ProCredit Bank.
About ProCredit Bank
ProCredit Bank, the only bank in Romania with 100% German shareholders, is part of the ProCredit group and has been active on the Romanian market since 2002. ProCredit Bank is a development-oriented commercial bank, offering excellent customer service to both small and medium enterprises and to private individuals. In its operations, the bank adheres to a number of core principles: transparency in its communication with customers, a conservative approach towards consumer lending, striving to minimise its ecological footprint and providing services which are based both on an understanding of each client’s situation and on sound financial analysis.
In its operations with business clients, the focus is on small and medium-sized enterprises, as it is the bank’s firm conviction that these businesses create jobs and make a vital contribution to the economies in which they operate.
ProCredit Bank’s shareholders expect a sustainable return on investment over the long term, rather than being focused on short-term profit maximisation, by offering convenient, straightforward and accessible banking services and by promoting a culture of saving and financial responsibility.
Press contact:
Andreea Pop
E-mail: andreea.pop@procredit-group.com
Tel.:+40.21/201.60.75