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EIB Extends EUR 50 Million to Raiffeisenbank (Bulgaria) for Financing Bulgarian Companies
12 January 2012
The European Investment Bank (EIB) extends EUR 50 million to Raiffeisenbank (Bulgaria) for financing of companies, which operate in Bulgaria. This credit line will help the financing of both investment projects of Bulgarian companies and their needs of working capital.
Thanks to this credit line Raiffeisenbank will extend long-term investment loans for purchasing, renovation or expansion of the final beneficiaries’ tangible assets, as well as their investment in intangible assets, i.e. expenditures for development, planning and financing costs during the construction phase of tangible assets; research and development expenses; building up of distribution networks. The maximum amount of the investment supported is between EUR 25 million to EUR 50 million depending on the size of the borrower.
„This is the fourth loan the European Investment Bank provides to Raiffeisenbank Bulgaria. This new EUR 50 million operation follows the full utilisation of the previous EUR 36 million loan and builds on the successful cooperation between the European Investment Bank and RBI Group. In line with EIB’s mandate to provide affordable support to European SMEs, Raiffeisenbank’s lending products funded with the EIB credit line will provide an important advantage in the form of lower interest rates compared to Raiffeisenbank’s other products without EIB’s participation”, commented Mr. Jean-Marc Martin, Deputy Head of the Bulgaria, Romania and Cyprus Division at the EIB.
“In 2011 we negotiated EUR 135 million in new credit lines and guarantee schemes and thanks to the new EIB financing we will expand our support for the Bulgarian business”, commented Momtchil Andreev, CEO of Raiffeisenbank (Bulgaria).
The financing is intended for all sectors of the economy, excluding the investments in weapons, gambling, tobacco products, activities involving live animals for experimental purposes, activities which give rise to environmental impacts that are not largely mitigated and/or compensated. Companies with up to 3000 employees on a consolidated basis may apply for financing under this credit line.
The current loan is a continuation of the successful cooperation between Raiffeisenbank (Bulgaria) and the European Investment Bank, as it is the fourth loan granted by the EIB to a member of Raiffeisen Group in Bulgaria. The total amount extended by EIB to Raiffeisen Group in Bulgaria stands at EUR 130 million.
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Raiffeisenbank (Bulgaria) EAD (www.rbb.bg) was established in 1994. The bank is fully owned by Raiffeisen Bank International AG (RBI).
RBI regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets.
RBI is the only Austrian bank with a presence in both the world's financial centres and in Asia, the group's further geographical area of focus.
Around 60,000 RBI employees service about 13.7 million customers through around 2,900 business outlets, the great majority of which are located in CEE.
RBI is a fully-consolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG (RZB). RZB indirectly owns around 78.5 per cent of the common stock, the remainder is in free float. RBI's shares are listed on the Vienna Stock Exchange.
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
