European Bank for Reconstruction and Development (EBRD) has agreed a €100 million medium term credit line for Bank Millennium S.A. to provide working capital and capital investment for small and medium-sized businesses (SMEs) in Poland.
The bank, majority-owned by Banco Comercial Português, is an universal bank in Poland with a nationwide presence of 490 branches, ranking fifth in the country by lending assets.
The funds will support Bank Millennium’s strategy to rebalance its loan portfolio by increasing its business in the SME segment in Poland. In addition, the EBRD loan will support Bank Millennium’s efforts to raise medium term funding.
The loan complements Bank Millennium’s plans to prepare for future growth by raising additional capital of 1 billion Polish Zloty through a rights issue, expected to be launched in the first quarter of 2010.