Original source: Microcapital
The European Investment Bank, the EU’s long-term lending institution, recently lent ProCredit Bank Bulgaria, one of 13 members of Germany’s ProCredit Group, EUR 15 million (USD 16.3 million). ProCredit Bank Bulgaria will on-lend the funds to small and medium-sized enterprises (SMEs) in Bulgaria, with 40 percent of the total to be directed to “renewable energy, energy efficiency, low carbon transport, and waste management projects.” EIB and ProCredit Bank Bulgaria have cooperated since 2011, during which time the parties have executed two other loans, also to finance SMEs.
EIB Vice President Lilyana Pavlova commented, “Support to cohesion regions and the fight against climate change are strategic priorities of the EU bank. The EIB, in cooperation with our well-established partner ProCredit Bank, will sustain employment in Bulgaria, strengthen the competitiveness of the private sector and support the fight against climate change.”
Launched in 2001, ProCredit Bank Bulgaria focuses on SME development and creating a supportive environment for economic growth in the country. At the end of 2018, it held total assets of EUR 6 billion (USD 6.5 billion) and a net loan portfolio is EUR 4.3 billion (USD 4.65 billion), earning return on equity (ROE) of 7.6 percent. The ProCredit Group of commercial banks serves SMEs in southeastern and eastern Europe, Ecuador, Georgia and Germany. The parent company of ProCredit Group, ProCredit Holding, is based in the city of Frankfurt. Its role is to execute the “strategic management, capital adequacy, reporting, risk management, and proper business organisation” of the group. Its other holdings are a training institute for ProCredit staff and Quipu, a provider of financial software services.
Founded in 1958, the European Investment Bank (EIB) primarily supports SME development in EU member states and potential future member states. EIB reported total assets of EUR 556 billion (USD 602 billion) and a loan portfolio of EUR 451 billion (USD 504 billion) in 2018.