Societe Generale have received two credit lines worth a collective
€70m from the European Investment Bank, of which a significant
proportion will go to the bank’s leasing subsidiaries.
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Part of the funds, which are aimed at developing the country’s
infrastructure and energy projects, include grants from the
European Commission.
Raiffeisen Bank and Raiffeisen Leasing received €50m, of which
30 per cent will go to the leasing arm and is expected to be used
for the purchase of long-term assets and for financing SMEs. About
€26m will be allocated to investment projects in the public sector,
prompted by Bulgarian municipalities and an extra €10m in banking
lines for loans to SMEs.
The credit line also includes long-term repayment options.
The remaining €20m in EIB funding will be divided equally
between SG Expressbank and Sogelease. The bank will use the capital
for financing energy-saving and infrastructure projects, as well as
the development of a better financial system, with SMEs receiving
the majority of the funding.
This is the EIB’s third loan injection to Raiffeisen, which is
Bulgaria’s fourth largest bank in terms of assets and which
reported a balance sheet total of approximately €3bn for year-end
2007. EIB’s previous two loans to the bank totaled €30m and were
also allocated to SME and municipal projects in transport,
manufacturing and tourism. Since 1990, EIB’s total financing to
Bulgaria has reached about €2.4bn.
