(AGENPARL) – mar 17 dicembre 2024 PRESS RELEASE2024-512-EN17 December 2024
Romanian businesses to get extra financing as EIB steps up lending to BRD Sogelease IFN
EIB lends €70 million to BRD Sogelease IFN for financing small firms and Mid-Caps
Credit is part of €120 million loan package to bolster Romanian businesses
Agreement earmarks 20% of credit line for environmental sustainability
The European Investment Bank (EIB) is lending €70 million to a unit of Romanian bank BRD Groupe Société Générale to increase financing for a range of businesses in the country. The EIB loan to BRD Sogelease IFN SA is meant to benefit Romanian small and medium-sized enterprises (SMEs) and Mid-Caps.
The credit is the second part of a €120 million EIB loan agreement with BRD Sogelease IFN to provide favourable financing to Romanian businesses that have limited access to bank lending. A fifth of the loan is earmarked for green projects. A first tranche of €50 million was announced in December 2023.
“Improving access to finance for small and medium-sized enterprises, the backbone of the European economy, is part of the EIB’s core mission. With this loan, we are helping Romanian companies access long-term financing on favourable terms,” said EIB Vice-President Ioannis Tsakiris. “Some of this financing will also be used for green investments, such as green mobility or improved energy efficiency, contributing to Romania’s national energy and climate goals, and ultimately, a more sustainable and resilient economy.”
The EIB loan provides long-term funding in euros or Romanian lei at favourable conditions compared with alternatives in the market.
“This collaboration with EIB is signalling our joint commitment to enhance financial solutions offered to local companies, in order to assist and support them in their development and transition to sustainable business models,” said Gabriel Mihai, Chief Executive Officer of BRD Sogelease IFN SA. “It is enriching us with know-how, and it fits into our mission to serve our SMEs and midcaps clients.”
As part of the overall loan accord of last year, the EIB offered advisory support on green investments to BRD Sogelease IFN and its clients. BRD Sogelease IFN has received EIB support in the form of technical assistance for product development, green-eligibility screening and impact reporting and monitoring.
Background information
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.
All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.
BRD Sogelease IFN SA
BRD Sogelease IFN SA is the leasing subsidiary of BRD Groupe Societe Generale, one of the leading banks in Romania, with total assets of RON 84 Billion as of September 2024, part of Societe Generale. Established in 2001, BRD Sogelease provides financial lease and other asset based financial solutions to over 10,000 SMEs and small cap clients in Romania.
Press contacts
          
BRD Sogelease IFN SA
Website: http://www.brdleasing.ro