EBRD becomes shareholder in ProCredit Holding

By Axel  Reiserer


EBRD takes 3.6% stake in development-oriented financial institution

The EBRD has acquired a 3.6% stake in ProCredit Holding AG & Co. KGaA with the subscription of 2.141.763 new shares by way of a capital increase.

ProCredit Holding is the parent company of the development-oriented commercial ProCredit group, which consists of banks for small and medium-sized enterprises (SMEs) operating in many countries where the EBRD invests. The two financial institutions have been longstanding partners with joint undertakings in south eastern and eastern Europe.

Created as a banking group in 2003 and headquartered in Frankfurt, Germany, ProCredit is a leading provider of SME financing and in recent years has also taken a pioneering role in green financing. The support of the private sector and the transition to a green economy are also core elements of the EBRD’s mandate and business strategy.

Henry Russell, EBRD Director, Financial Institutions, Western Balkans, Belarus, Moldova and Ukraine, said: “ProCredit is our long standing partner in debt and equity transactions. We are happy to participate in this first capital increase raised through the capital markets to support further growth of the Group and improve access of SMEs to responsible finance in our countries of operations. PCH continues to be among EBRD’s key partner banks in SME lending.”

Borislav Kostadinov, Member of the Management Board of ProCredit General Partner AG (sole liable managing entity of ProCredit Holding AG & Co. KGaA), added “One year after the listing of our holding company’s shares on the Frankfurt Stock Exchange we used this access to the capital market for the first time today to finance the future growth of our banking group. We are very pleased with the success of this effort. The appetite for new ProCredit Holding shares significantly exceeded our expectations. We greatly appreciate the fact that the European Bank for Reconstruction and Development has subscribed to a large number of new shares. The successful placement of our new shares is a clear sign of confidence in our Group and in our way of doing banking.”

The EBRD was established in 1991 to support the transition of countries to market economies after the fall of communism in Europe. Over the years the Bank’s activities and outreach expanded significantly and today the EBRD operates in 38 economies from Morocco to Mongolia and from Estonia to Egypt. Within the Bank’s transition mandate today support for the private sector and green economy are central.

To date, the EBRD hast invested almost €120 billion through more than 5,000 projects. In 2017, the Bank not only achieved a new record volume with 412 operations for €9.7 billion of which 43 per cent where dedicate to green financing.