The European Bank for Reconstruction and Development (EBRD) agreed a €50m credit line to CIB Bank in order to increases the availability of financing to the real economy in HungaryA part of the facility, at least €10m equivalent, will be denominated in Hungarian Forint.
The proceeds of the loan will be used to finance SMEs operating in Hungary in the form of short and medium term investment and working capital loans as well as leasing, factoring and other financing instruments. The €10m equivalent denominated in Hungarian Forints will enable CIB Bank to provide its clients with local currency financing, helping them to reduce exposure to foreign currency risks.
CIB Bank, which is majority-owned by the Intesa Sanpaolo Group, is the second largest bank in Hungary in terms of customer loan placements with a market share exceeding 11% and a major player in the corporate segment, with a growing SME portfolio.
The credit line to CIB Bank is part of the €100m financing package provided by the EBRD to three of Intesa Sanpaolo Group’s subsidiaries in central and eastern Europe, which also includes a €20 million credit line to Intesa Sanpaolo Bank in Bosnia and Herzegovina and a €30 million to Banca Intesa Beograd in Serbia.
FinSMEs
11/04/2010
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