EIB facility to help Romanian companies finance long-term investments
The number of companies that will ultimately benefit will depend on the size and costs of the individual projects and on the loan amounts requested by Romanian SMEs and Mid-Caps. The facility is designed to support a broad range of businesses and investments rather than a fixed number of final beneficiaries. Typically, EIB financing provided through partner financial intermediaries such as BRD Sogelease is deployed over a two-year allocation period. During this period, eligible Romanian companies can access financing for their investment projects under the facility.
This was said by Clara Wanjek-Bauer, Press Officer at the European Investment Bank’s Communication Department, in an exclusive interview with CE Report.
The 15% earmarked for green projects can support a broad range of eligible investments. These include renewable energy, energy efficiency, sustainable transport and agriculture, among other areas. At this stage, it is not possible to predict which category will receive the largest share, as the final allocation will depend on the projects submitted by Romanian SMEs and Mid-Caps during the allocation period. The facility is designed to respond to the investment needs of eligible companies while supporting Romania’s green transition.
The EIB expects around 80% of the €100 million facility to finance projects implemented in Romania’s cohesion regions. The precise geographical distribution will depend on the location of the projects submitted by companies during the allocation period, so it is not possible to identify specific regions as the largest beneficiaries at this stage.
The geographical location of each financed project is part of the standard reporting provided by the financial intermediary. This allows the EIB to monitor the distribution of financing and assess progress towards the targeted allocation to cohesion regions.
Companies benefiting from EIB-backed financing through BRD Sogelease are expected to benefit from longer maturities and more favourable interest rates compared with financing available without EIB involvement. This can improve the affordability of investment financing and give SMEs and Mid-Caps more time to repay their loans.
The EIB’s involvement therefore helps partner financial intermediaries offer financing on terms that can support longer-term investment and make it easier for Romanian companies to undertake projects that might otherwise be more difficult to finance under standard market conditions.
Photo: EIB
This interview was prepared by Julian Müller
