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Raiffeisenbank and EBRD agree first Bulgarian-leva funding facility
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.
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