The UK-based European Bank for Reconstruction and Development (EBRD) has agreed to loan up to EUR 85 million (USD 111.5 million) to two units of French-based Société Générale Group to finance the growth of small and medium-sized enterprises (SMEs) in Bulgaria. Société Générale Expressbank (SGE), the group’s Bulgaria-based bank, will receive access to up to EUR 75 million (USD 98.4 million) in three tranches provided over the next three years. Sogelease Bulgaria, SGE’s subsidiary leasing company, will receive access to EUR 10 million (USD 13.1 million) to support funding described as medium- and long-term to SMEs for medical equipment, agricultural equipment, trucks, trailers and commercial vehicles.
As of 2011, SGE reported total assets of BGN 3.5 billion (USD 2.3 billion), return on assets (ROA) of 1.49 percent, return on equity (ROE) of 12.06 percent and 377,000 customers. As of 2012, SGG reported total assets of EUR 1.3 trillion (USD 1.6 trillion), deposits of EUR 337.2 billion (USD 441.4 billion) and served 33 million in 77 countries. Financial data for gross loan portfolio, return on assets and return on equity are not available.
EBRD has financed 200 projects in Bulgaria totaling approximately EUR 8.5 billion (USD 11.2 billion) as of April 2013.
By Jennifer Young, Research Associate
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
About Société Générale Expressbank
Société Générale Expressbank (SGE), a Bulgaria-based financial institution, was founded in 1993 as ExpressBank and acquired by the Société Générale Group of France in 1999. As of 2011, SGE reported total assets of BGN 3.5 billion (USD 2.3 billion), return on assets (ROA) of 1.49 percent, return on equity (ROE) of 12.06 percent and 377,000 customers.
Sources and Additional Resources
European Bank for Reconstruction and Development Story: “EBRD and Société Générale Expand Cooperation”
MicroCapital Story: “MICROCAPITAL BRIEF: Part of $38b Commitment From European Investment Bank, World Bank, European Bank For Reconstruction and Development To Support SMEs,” November 21, 2012.
MicroCapital Story: “MICROCAPITAL BRIEF: ProCredit Bank Bulgaria Launches Home Loan Program,” April 25, 2013.
MicroCapital Story: “European Bank for Reconstruction and Development (EBRD) to Promote Energy Efficiency Through Memorandum of Understanding (MOU) with Government of Bulgaria, $9.7m Loan to Moldovan Bank BCR Chisinau”, March 8, 2011. http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-promote-energy-efficiency-through-memorandum-of-understanding-mou-with-government-of-bulgaria-9-7m-loan-to-moldovan-b/
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)
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