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Raiffeisenbank and EBRD agree first Bulgarian-leva funding facilit
26 April 2005
Raiffeisenbank (Bulgaria) EAD has signed a Revolving Facility Agreement providing local-currency funding amounting to Bulgarian Leva (BGN) 40 million to the European Bank for Reconstruction and Development (EBRD) for on-lending to Bulgarian borrowers.
The deal is a milestone for the EBRD, which, having secured financing in leva for the first time, is now exploring a number of Bulgarian projects that would require funding in the local currency.
The term of the Facility is one year with a possibility to be automatically extended upon mutual agreement. The interest rate is based on the benchmark Index prevailing on the BGN Money Market - SOFIBOR.
The Revolving Facility Agreement is the next logical step in the strategic cooperation between Raiffeisenbank (Bulgaria) and the EBRD.
In 2002, Raiffeisenbank (Bulgaria) received its first SME (small and medium enterprises) loan from the EBRD, amounting to EUR 10 million. The funds were successfully disbursed to local SMEs, creating a substantial number of permanent jobs. The Facility included funds for technical assistance, which Raiffeisenbank used to optimize the loan processing.
Raiffeisenbank, a subsidiary of Raiffeisen International Bank-Holding AG (Raiffeisen International) and a member of RZB Group, was established in 1994. The bank is 100% owned by Raiffeisen International, the holding company for RZB's subsidiaries in Central and Eastern Europe. In 2004, Raiffeisenbank has continued its expansion. At year-end 2004 the total assets of the bank have increased by 137 per cent to BGN 2 billion (EUR 1,026 million). Raiffeisenbank also significantly increased its net profit, which was 77 per cent higher than in 2003 at BGN 24.5 million (EUR 12.5 million). 15 newly opened offices increased the total number of business outlets to 52. The number of employees increased by 37.6 per cent to 809.
The EBRD, owned by 60 governments and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies in central and eastern Europe and the Commonwealth of Independent States.
For further information please see the EBRD’s website – www.ebrd.com – or tel. +44 20 7338 7805.
