€20 million credit line for on-lending to small and medium companies
The EBRD is boosting the availability of financing to the real economy in Bosnia and Herzegovina with a €20 million credit line to Intesa Sanpaolo Banka d.d. BiH , majority owned by Intesa Sanpaolo Group, for on-lending to small and medium enterprises (SMEs).
Intesa Sanpaolo Banka is the fourth largest commercial bank in Bosnia and Herzegovina, with a nationwide network and a growing portfolio. The EBRD credit line is part of the €100 million financing package provided by the EBRD to three of Intesa Sanpaolo Group’s subsidiaries in eastern Europe.
The proceeds of the loan will be used to provide short, medium and longer-term financing to private businesses operating in Bosnia and Herzegovina in the form of investment loans, revolving credit facilities, leasing, factoring or other financing instruments.
“The EBRD credit line will contribute to Intesa Sanpaolo Banka's continued investment in the growth of the real economy, of which SMEs are the lifeblood in Bosnia and Herzegovina. In addition, this transaction demonstrates that, in this difficult environment, the EBRD with its partner Intesa Sanpaolo remains committed to the country and the region and continues to invest,” said Francis Malige, EBRD Director, Financial Institutions, Western Balkans, Belarus, Moldova and Turkey.
"This project is a continuation of the successful business cooperation between Intesa Sanpaolo Banka and the EBRD in financing projects in Bosnia and Herzegovina. In the current challenging environment, it is highly important for us as a bank to secure stable and long-term financing that would ensure efficient financial support to companies with good projects. The EBRD credit line will definitely make that possible", said Almir Krkalić, CEO of Intesa Sanpaolo Banka d.d. BiH.
The EBRD facility offered to subsidiaries of the Intesa Sanpaolo Group also includes a €30 million credit line to Banca Intesa Beograd in Serbia and a €50 million to CIB Bank in Hungary. The investment is part of a joint pledge by the EBRD, the World Bank Group and the European Investment Bank (EIB) to provide €24.5 billion in support of the banking sectors in the region and to fund lending to businesses hit by the global crisis.
Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has committed over €1.1 billion in various sectors of the country’s economy, of which 315 million in the financial sector.