The Overseas Private Investment Corporation (Opic) has approved a US$25mn loan to a parent company of 22 development-oriented banks to expand lending to micro and small and medium-sized enterprises (SMEs).
The loan will provide ProCredit Holding (PCH), one of the most successful organisations globally in creating financial institutions that provide finance for micro and small businesses in developing countries, with capital in order to expand their lending.
Opic has partnered extensively with ProCredit institutions during the last several years, including loans to ProCredit institutions in Ukraine and Moldova. The ProCredit group has performed steadily throughout the global financial crisis.
“This project will provide ProCredit Holding – an important Opic partner and premier development finance institution – with the ability to strengthen and diversify its capital base that it needs to expand at a time when other potential sources of financing have diminished,” says Opic acting president Lawrence Spinelli. “We are pleased to deepen our partnership with ProCredit Holding at time when capital for micro and SME lending is truly needed.”
PCH was founded in 1998 by Internationale Projekt Consult, a German consulting company, as an investment company for investing in the network of ProCredit banks.
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