French development institution Proparco approved a EUR 50 million credit line for ProCredit Bank to finance small and medium-sized enterprises and green projects in Serbia.
ProCredit Bank and Proparco, the private sector financing arm of Agence Française de Développement Group (AFD Group), have initiated a project that will secure funding for small and medium-sized enterprises – SMEs and green projects.
The deal is aimed at contributing to the development of the private sector and promoting sustainable economic development and environmental protection. Proparco said it chose to support ProCredit as a result of the bank’s competency in the area of development and an extensive SME and green portfolio.
“These loans will allow for the strengthening of the SME sector and will make energy-efficient solutions available options for businesses and the local population alike,” said Igor Anić, Chairman of the Executive Board at ProCredit Bank.
ProCredit has its own green financing methodology
In Serbia, ProCredit Bank finances approximately 4,000 SME clients, with loans averaging EUR 242,000, the statement adds. ProCredit Group has developed a green financing methodology which is institutionally supported both internally and at the subsidiary level.
“This is the first operation in the banking sector in Serbia for Proparco, where AFD Group recently opened a regional office, and I hope it will be the beginning of the deployment of other operations in favor of the Serbian private sector,” Proparco’s Chief Executive Officer Grégory Clemente said.
Proparco and ProCredit Bank in Serbia are jointly contributing to the achievement of three sustainable development goals
The collaboration will contribute to sustainable development goals: SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure) and SDG 13 (Climate Action), according to the announcement.
Proparco provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle East. It focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education.
ProCredit Bank said it invested more than EUR 5 billion in Serbia and that 85% are loans for small and medium-sized enterprises, entrepreneurs and farmers. It added that it pays special attention to responsible banking, promotion of energy efficiency investment and the development of a savings culture among its clients.