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Summary of Project Information (SPI) |
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| Project number | 9359 |
| Project name | Bulgarian American Credit Bank |
| Country | Bulgaria |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Bulgarian-American Credit Bank A.D. |
| Environmental category | FI |
| Date disclosed | November 25, 1998 |
| Status | Completed |
| Previous Events | Invested: December 1, 1999
Signed: June 4, 1999
Approved: March 8, 1999 |
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Summary Of Project Information (SPI)
| Project Name | Bulgarian American Credit Banc (BACB) |
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| Region | Europe |
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Project No009359
Projected Board DateDecember 28, 1998
Company NameBulgaria American Credit Banc
Technical Partner and/or Major Shareholders
BACB is wholly owned by Bulgarian American Enterprise Fund (BAEF). BAEF is a not-for-profit Delaware Corporation, established in 1993 by the U.S. Government. Its mission is to assist in the development of small and medium private enterprises in Bulgaria. BAEF belongs to the group of Enterprise Funds targeting Eastern Europe which were formed in accordance with the principles of the U.S. Support for East European Democracy Act of 1989 (SEED Act). BAEF is capitalized by a US$50 million grant from the US Treasury.
Project Cost Including proposed IFC investment
US$5 million
Location of project and Description of site
Sofia, Bulgaria
Description of Company and Purpose of Project
In 1996, Bulgarian American Credit Bank (BACB) was created out of the loan operations of Bulgarian American Enterprise Fund (BAEF), a US$50 million US Treasury-sponsored fund that supports the development of small and medium sized enterprises (SMEs) in Bulgaria. After initial difficulties, BAEF has established a decent track record of lending to this target sector. Now, BAEF would like to help BACB "graduate" into a free-standing, commercially viable financial institution and has asked for IFC's help in attracting a strategic investor and in providing term financing for on-lending to SMSE's. IFC is considering a US$5 million loan of up to 5 years, for on-lending to SMEs. This loan would be convertible into equity, at IFC's option, when a strategic partner is found. Through this project, IFC would strengthen BACB, ensure that a quality player operates in the Bulgarian banking system, and support the SME sector.
Environmental Category and Issues
This is a Financial Intermediary (FI) Tier 2 project according to IFC's environmental review procedure. BACBank will be required to undertake an environmental review of each subproject to ensure compliance with host country requirements, IFC environmental and social safeguard policies, and , if applicable, World Bank Group environmental, health and safety guidelines. IFC will assess BACBank’s capability to carry out environmental reviews. BACBank must obtain IFC clearance prior to making any investment with IFC funds in any Category A project.
| Date SPI sent to InfoShop | November 25, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384 |
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