The European Investment Bank (EIB) is lending €100 million to BRD Sogelease IFN, the leasing subsidiary of BRD Groupe Société Générale, to expand financing for businesses across Romania.
The funding is set to support small and medium-sized enterprises (SMEs) and “Mid-Caps” — medium-sized companies that are larger than typical SMEs — as they pursue investments ranging from business expansion to productivity improvements, the EIB announced on Friday.
BRD Sogelease will use the EIB loan to offer long-term financing in euros or Romanian lei, with terms described as more favourable than market alternatives.
About 15% of the €100 million is earmarked for green projects, including energy-efficiency measures, renewable energy and sustainable transport.
Around 80% of the loan is projected to be deployed in less-developed parts of the country classified by the EU as “cohesion regions.”
Previous financing and comments
The EIB pointed out that the operation builds on previous loans to BRD Sogelease totalling €305 million over the past decade.
“In today’s rapidly changing economy, access to finance is a key enabler of competitiveness,” EIB Vice-President Ioannis Tsakiris said in the statement.
BRD Sogelease General Manager Gabriel Mihai added the facility would help the company provide SMEs and Mid-Caps with “enhanced access to long-term funding” for investment in “expansion, innovation, productivity and sustainable development.”
The EIB also said it has provided advisory support on green investments to BRD Sogelease and its clients during the past decade.
