Raiffeisenbank (Bulgaria) EAD has signed a revolving facility agreement providing local currency funding amounting to Lev40mn to the EBRD for on-lending to Bulgarian borrowers.

The deal is a milestone for the EBRD, which, having secured financing in lev for the first time, is now exploring a number of Bulgarian projects that would require funding in the local currency.

The term of the facility is one year with a possibility to be automatically extended upon mutual agreement. The interest rate is based on the benchmark Index prevailing on the BGN Money Market – Sofibor.

The agreement is the next logical step in the strategic cooperation between Raiffeisenbank (Bulgaria) and the EBRD.

In 2002, Raiffeisenbank (Bulgaria) received its first SME (small and medium enterprises) loan from the EBRD, amounting to €10mn. The funds were successfully disbursed to local SMEs, creating a substantial number of permanent jobs. The facility included funds for technical assistance, which Raiffeisenbank used to optimise the loan processing.