Pursuant to Article 2.2 of the Law on Bulgarian Development Bank, the bank cooperates with leading international financial institutions (IFIs) in order to attract financial resources and to exchange know-how.
Curent status of attracted external resources and expansion of the cooperation with international financial institutions and bank-partners.
European Investment Bank (EIB) – In October 2000, BDB signed the first financial contract (agreement) with the European Investment Bank in the amount or EUR 10 million for investment projects of small and medium enterprises.
In December 2009 a second finance contract was signed between BDB and EIB in the amount of EUR 25 million for financing investment projects of Bulgarian SMEs and priority projects in the fields of infrastructure, energy, environmental protection, industry, health and education, as well as other priority investments within the scope of EIB’s Innovation 2010 initiative. - www.eib.org
European Investment Fund (EIF) – In 2003 BDB obtained a guarantee line from EIF. The loans guaranteed under the line are for SME’s with up to 100 employees and a minimum term of 36 months. The partial risk sharing resulted in decrease of BDB’s collateral requirements under SME loans, which facilitated their access to financing substantially and permitting their business to grow.
In 2011, National Guarantee Fund (NGF) and Jobs Micro financing institution (MFI), both subsidiaries of BDB, signed two agreements with EIF to benefit the SME in Bulgaria, under the EU Competitiveness and Innovation Programme (CIP) and the European Progress Microfinance Facility (Progress Microfinance) mandates of the European Commission. The EUR 6 million loan for JOBS MFI and EUR 30 million guarantee agreement for guarantees issued by National Guarantee Fund (NGF) will allow Bulgarian entrepreneurs to access finance and equipment to start up, develop and grow their businesses. - www.eif.org
The Council of Europe Development Bank (CEB) is a traditional partner of BDB. Until now BDB has signed three loan agreements in the amount of EUR 50 million. In 2003 CEB extended a first credit line to BDB in the amount of EUR 15 million under the programme Job Creation and Maintenance for SME’s in Bulgaria. The loan is divided in two parts – EUR 5 million, covering loans for one to four years, and EUR 10 million, covering loans for four to ten years. With the financing of investment project of SME’s under this credit line 2545 new jobs were created.
A second loan agreement between CEB and BDB was signed in November 2009. The loan is for the amount of EUR 15 million. BDB has successfully utilized this second credit line in the financing of investment projects of micro, small and medium-sized enterprises, creating new and preserving existing jobs.
In March 2011 a third Loan agreement was signed between the Council of Europe Development Bank and Bulgarian Development Bank for the amount of EUR 20 million. The funds will reach the Bulgarian business through direct investment loans, with the aim to create new and to preserve the existing jobs, as well as for financing of craftsmen and family entrepreneurs. – www.coebank.org
Kreditanstalt für Wiederaufbau (KFW) – In 2002 BDB concluded a Trust management agreement with the Ministry of Finance (BDB being a trustee of MF) for management of funds granted by Kreditanstalt für Wiederaufbau (KfW) pursuant to an agreement between the Governments of Bulgaria and Germany. These funds are provided for the purpose of financing small and medium-sized enterprises.
BDB is a direct recipient of funds under an Agreement between Bulgaria and Germany for financial collaboration from 2001 and an agreement between the Republic of Bulgaria and KfW. By virtue of this agreement, the amount EUR 4,9 million is granted to BDB to be used on a revolving principle for a period of 10 years. The financial resource is for funding investment projects of micro, small and medium-sized enterprises with more than 50% private participation, as well as for working capital loans. Under the agreement, BDB extends credit lines to partner banks for a period of up to three years.
On the 27th of July 2010 Bulgarian Development Bank signed a direct loan agreement for EUR 25 million with the German development bank Kreditanstalt für Wiederaufbau. The financial resource is intended for direct lending of small and medium sized enterprises and/or for credit lines for commercial banks for special-purpose financing for the SME sector. The funds shall be used mainly for financing of long-term investment projects of companies. – www.kfw.de
Nordic Investment Bank (NIB) – On 16 November 2004, BDB and NIB signed a loan agreement for the amount of EUR 10 million for the financing of investment projects of mutual interest for the Republic of Bulgaria and the member states of NIB (Kingdom of Denmark, Republic of Finland, Republic of Iceland, Kingdom of Norway and Kingdom of Sweden, as well as Lithuania, Latvia and Estonia). Loans under the programme are extended for a period of three to ten years.
On 15.12.2010 a second credit line has been signed between Nordic Investment Bank and BDB for the amount of EUR 20 million. The funds are indented for the financing of investment projects with participation of NIB member states, projects related to renewable energy sources or to environmental protection. End financing may be provided directly from BDB or through bank-partners. - www.nib.int
Black Sea Trade and Development Bank – On 9 October 2009 Bulgarian Development Bank AD signed a Loan agreement with black Sea Trade and Development Bank in the amount of EUR 8 million for the financing of Bulgarian small and medium enterprises. The purpose of the credit line is creation, modernization and expansion of the activity of the SMEs in Bulgaria.
On 9 September 2011 BDB signed a second loan agreement with Black Sea Trade and Development Bank in the amount of EUR 31 million for the financing of Bulgarian small and medium-sized enterprises. The purpose of the loan is to finance specific projects, investment programs, working capital, export and pre-export activities of industrial, agricultural or service-related enterprises conducting business in Bulgaria. - www.bstdb.org
Japanese Bank for International Cooperation (JBIC) – In 2006 BDB received a EUR 10 million credit line from Japanese Bank for International Cooperation for financing of the import of Japanese investment goods and part of the local expenses of Bulgarian companies.
In 2009 BDB signed a second loan agreement for EUR 20 million with the Japan Bank for International Cooperation. The purpose of the agreement is to promote the economic cooperation between japan and Bulgaria by financing Bulgarian companies from all industries which purchase equipment manufactured in Japan and services provided by Japanese companies.
DEXIA Kommunalkredit Bank – In 2007 BDB signed a Loan agreement with Dexia Kommunalkredit for EUR 10 million. The loan is intended for the financing of investment projects of small and medium-sized enterprises in Bulgaria. - www.dexia.com
DEPFA Investment Bank – On 18 May an Agreement was signed with Depfa Investment Bank for EUR 15 million for general corporate purposes. - www.depfa.com
CitiBank N.A. - Sofia Branch - During 2010 and 2011 Bulgarian Development Bank AD (BDB) signed 3 Facility Agreements with CitiBank.
The first Facility Agreement between BDB and CitiBank was signed on 27 September 2010. The loan was for the amount of EUR 12 million. The funds were used to finance the purchase of receivables with regard to the mechanism for settling restructured payments under the republican budget due from government budget spending institutions.
The second Facility Agreement between BDB and CitiBank was signed on 31 August 2011. The loan is for the amount of EUR 7,9 million. The funds under this loan are used for refinancing of trade transactions.
The third Facility Agreement between BDB and CitiBank was signed on 16 September 2011. The loan is for the amount of EUR 20 million. The funds will be used for direct and indirect financing of small and medium-sized enterprises. - www.citibank.com
China Development Bank – On 15 October 2009 BDB signed a Loan agreement with China Development Bank in the amount of EUR 5 million. The funds under the loan are intended for direct lending to small and medium-sized enterprises. - www.cdb.com.cn
Sumitomo Mitsui Banking Corporation Europe Limited (SMBCE) – On 13 May 2010 BDB and Sumitomo Mitsui Banking Corporation Europe signed a bilateral commercial financial facility. According to the facility Sumitomo Mitsui Banking Corporation Europe may provide short-term financing to BDB for commercial transactions for period of up to 1 year and limit or up to USD 5 million.
On 19 May 2011 an amendment to the agreement was signed, increasing temporarily the available limit with an additional EUR 9,450 thousand. - www.smbcgroup.com
MEMBERSHIP IN INTERNATIONAL ORGANIZATIONS
Network of European Financial Institutions (NEFI)
In 2007 BDB was accepted as a full member of the Network of European Financial Institutions (NEFI) after it was an observer at the organization since 2004. NEFI consists of 17 financial institutions from 16 member state of the European Union and Croatia.
All members share a common mission set by the government of their respective country – to facilitate the access to financing for small and medium-sized enterprises. The partnering institutions operate on the principle of being complementary to one another and cooperation with the respective national banking systems through provision of co-financing, risk sharing, expert opinions regarding issues with SME financing. - www.nefi.be
European Association of Public Banks (EAPB)
Since May 2005 BDB is a member of the European Association of Public Banks, a prestigious organization with more than 100 members – financial institutions with 15% market share in Europe and assets of about EUR 3,500 billion. The EAPB members are banks with state participation, development banks and other European financial institutions. The mission of the Association is to represent the specific interest of the state banks and the development banks at the European level. The membership in EAPB facilitates the exchange of experience and best practices between BDB and other European public banks. - www.eapb.be
The Club of Institutions of the European Union Specializing in Long-Term Loans
Members of the organization are the European Commission, The European Investment Bank, the Nordic Investment Bank, as well as eighteen national institutions from the European member states and three associate members from Croatia, Norway and Turkey. The organization is established in June 2001 to ensure cooperation, exchange of information and know-how in the area of long-term loans. - www.isltc-club.org
COOPERATION WITH INTERNATIONAL FINANCIAL INSTITUTIONS
Instituto de Crédito official (ICO) - In 2004 a Memorandum of Understanding was established between the both institutions. - www.ico.es
North Rhine Westphalia Development Bank (NRW) – In 2006 BDB entered into a Cooperation Agreement with North Rhine Westphalia Development Bank, which is the first step towards development of future cooperation. The German bank is the state-owned institution for development of North Rhine Westphalia – a region in Germany with a population of more than 18 million people. The main fields of cooperation are the exchange information about existing and new products, development programmes and other investment incentives. - www.nrwbank.com
Moscow Bank for Reconstruction and Development (MBRD) – On 3 August 2006 BDB signed a Memorandum of Cooperation with the Moscow Bank for Reconstruction and Development. The cooperation between the two banks was in the form of financial facilities and instruments for financing of export transactions between the two countries. - www.mtsbank.ru
International bank for Economic Cooperation (IBEC) – On 12 November 2006 BDB signed a frame agreement with International bank for Economic Cooperation (IBEC), Moscow. The two institutions are aiming to facilitate entrepreneurship and commerce between Bulgaria and Russian Federation, as well as with the IBEC shareholder states. - www.ibec.int
Macedonian bank for Development Promotion (MBDP) – On 26 January 2010 BDB signed an Agreement for Cooperation with the Macedonian Bank for Development Promotion. According the agreement BDB will share with the Macedonian partner its know-how regarding the attraction of long-term financial resource from international specialized banks without state guarantee. - www.mbdp.com.mk
Croatian Bank for Reconstruction and Development (HBOR) – On 29 April 2010 BDB signed a Memorandum of Understanding with the Croatian Bank for Reconstruction and Development. The purpose is to establish the framework for cooperation between the two institutions in supporting and encouraging trade and investments between the Republic of Bulgaria and the Republic of Croatia, as well as to strengthen the cooperation in export credit financing. - www.hbor.hr
GSM – 102 Program of the American Department of Agriculture (2010). BDB was approved as a bank-partner under the Program for guarantees on export transactions. The program will support Bulgarian importers of agricultural production from the USA. For this purpose, American bank-partners may provide financing to BDB for up to 2 years and limit of the guarantee payments under the refinancing of up to USD 20 million.
Industrial Development Bank of Turkey (TSKB) – On 9 August 2010 BDB signed a Memorandum of Understanding with the Industrial Development Bank of Turkey. The aim is to support trade and other forms of economic cooperation between the Republic of Bulgaria and the Republic of Turkey and develop projects of mutual interest. - www.tskb.com
The Export – Import Bank of Korea (KEXIM Bank) – On 16 December 2010 BDB signed an Agreement for cooperation with the Export – Import Bank of Korea. By virtue of this agreement a partnership was established between the two institutions with the aim to promote trade and investment relations between the Republic of Bulgaria and the Republic of Korea. – www.kdb.hu