€65m to innovate Bulgaria and Slovakia
The European Investment Fund (EIF) and CIBANK JSC (CIBANK) have signed an agreement to enhance access to finance for innovative SMEs and mid-caps in Bulgaria and Slovakia.
This InnovFin Umbrella transaction with CIBANK, acting as a co-ordinating entity, includes an agreement with Československá obchodná banka a.s. (CSOB) and benefits from the support of the European Fund for Strategic Investments (EFSI).
The new agreement will allow CIBANK to provide loans at favourable terms to innovative SMEs and mid-caps for two years. EIF’s guarantee is provided under the EU’s InnovFin initiative with financial backing under Horizon 2020.
This transaction is expected to generate a portfolio of €65m of loans and reflects the EU’s commitment to launching concrete initiatives under the EFSI, accelerating lending and guaranteeing transactions capable of boosting jobs and growth in the EU.
European Commission Vice-President Jyrki Katainen said: “Today’s agreement between EIF and CIBANK, the fourth such ‘umbrella agreement’ targeting multiple countries under InnovFin, re-affirms our commitment to further improve the geographical coverage of the SMEs benefiting from EFSI across Europe.
“The EFSI will continue to play a crucial role in helping innovative SMEs in Bulgaria, Slovakia and beyond gain access to vital financing solutions.”
EIF’s head of guarantees, securitisation and microfinance, Alessandro Tappi, added: “I am pleased that EIF is signing another agreement with CIBANK. EIF benefits from a longstanding relationship with CIBANK through other agreements, notably under EFSI, and I am therefore grateful to CIBANK for having taken the opportunity to extend our co-operation.
“CIBANK benefits from a strong experience in SME financing, and today’s agreement will help CIBANK to reach out to even more small businesses in need of financing.”
