RZB as mandated lead arranger has signed banks into Bulgarian American Credit Bank’s (BACB) debut loan facility.
Due to an oversubscription of 20% the total amount was increased to €
12mn. Some six banks are forming the syndicate.
The funds will be on-lent under SME-related loan schemes to BACB’s customers. Repayment will be bullet in a single amount. The two-year loan is extendable for up to another year at the lender’s discretion. The margin is 2.0% per year.
The facility benefits from an ownership maintenance clause (¥75%) by the Bulgarian American Enterprise Fund of Chicago.
Lead managers are LRP Landesbank Rheinland-Pfalz and National Bank of Greece. Managers for the facility are: Adria Bank Wien, Anglo Irish Bank, London and Bankgesellschaft Berlin.
Bulgarian American Credit Bank was incorporated in 1996 and is fully licensed by the Bulgarian National Bank. BACB is a wholly-owned independent entity of the Bulgarian American Enterprise Fund (BAEF).
BAEF is an US corporation, registered in 1992 in Chicago, Illinois, established by the US Congress under the Support for East European Democracy Act (SEED) which authorised the US government to disburse up to US$58mn to BAEF for investment and reinvestment in the private sector of Bulgaria. BAEF is managed by independent all volunteer unpaid board of directors, appointed by the US government.
BACB focuses on financings of small and medium size enterprises (SMEs) in different economic sectors as well as lending to individuals and households. For the last few years BACB has been ranked among the leading Bulgarian banks in terms of return on assets and return on equity according to the Bulgarian National Bank statistics.