EIF signs second CIP agreement in Bulgaria

Raiffeisenbank (Bulgaria) EAD is the first private-owned Bulgarian Bank to sign a Portfolio Guarantee issued by the European Investment Fund (EIF) under the European Union's (EU) Competitiveness and Innovation Framework Programme (CIP) for Bulgaria. The Portfolio Guarantee amounts to EUR 72 mln.

Commenting on the transaction, Mr. Pelly EIF's Chief Executive said: "The European Community CIP programme gives EIF the opportunity to renew its collaboration with Raiffeisenbank in support of small and medium sized enterprises (SMEs) . We hope that it will be another success story which will further help growth and entrepreneurship in the region, particularly in the current economic context" .

According to the preliminary and unaudited results, in 2008 Raiffeisenbank kept its leading position in financing SMEs. Its loan portfolio in the segment reached nearly BGN 2 billion, or up 32% as against 2007.  Compared to Dec 31, 2007, in 2008 the profit after tax increased by 22%, reaching BGN 132.6 mln.

The Facility makes it possible for Raiffeisenbank (Bulgaria) EAD to provide its Micro and SME clients with enhanced access to finance by offering them more flexible criteria, reduced collateral and interest rates and extended loan maturity.

The CIP Guarantee allows the bank to provide loans to Micro and SME companies with a maximum loan amount of EUR 300,000 and a minimum tenor of 18 months.
This facility is the EIF's second Guarantee Scheme to Raiffeisenbank (Bulgaria). In 2006, the Bank signed EUR 20 mn MAP Guarantee Facility which was successfully implemented by the end of 2008.

Background information:

Raiffeisenbank (Bulgaria) EAD was established in 1994. The bank is fully owned by Raiffeisen International Bank-Holding AG, the company, which operates the subsidiaries of Raiffeisen Zentralbank Oesterreich AG (RZB) in Central and Eastern Europe. 17 markets in the CEE region are covered by subsidiary banks, leasing companies and a number of other financial service providers. 14.6 million customers are attended to through more than 3,100 business outlets. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG (RZB), which owns more than two thirds of the common stock. The balance is free float, the shares are traded on the Vienna Stock Exchange.

European Investment Fund (EIF) is the European Union's specialised financial body for small and medium-sized enterprises. EIF's central mission is to support Europe's SMEs by helping them to access finance.  EIF designs and develops equity (venture capital and private equity) and debt (guarantees) instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, regional development, entrepreneurship, growth, and employment.

Contact:

- EIF: David Yormesor, d.yormesor@eif.org

- Raiffeisenbank (Bulgaria): Public Relations Department tel. (+91) 985 174 167 600