The European Bank for Reconstruction and Development (EBRD) has provided a EUR 11.4 million syndicated loan to ProCredit Bank for Romania to meet the demand of local small and medium enterprises.
Structured under the EBRD’s A/B loan scheme, the facility includes a EUR 8.4 million “A” loan, of which EUR 5 million for the EBRD’s account and the additional EUR 3.4 million was provided by the International Cooperation and Development Fund (ICDF) Taiwan. The EUR 3 million “B” loan portion of the loan was syndicated to SICAV (Lux) Financial Inclusion Fund and SICAV (Lux) Mikrofinanz-Fonds.
“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.
ProCredit Bank Romania has a network of 28 regional branches and offers loans to SMEs. It provides universal banking services to small companies, including enterprises in the agricultural sector.