The European Fund for Southeast Europe (EFSE), Green for Growth Fund (GGF) and Basisbank, are further expanding their partnership to support Basisbank’s accelerated growth and advancement on the market. The financing package includes: EUR 10 million worth of a Subordinated Loan by EFSE and EUR 5 million worth of a Subordinated Loan by GGF. The financing package bears a maturity of seven years and qualifies as Tier II capital under the Basel III framework, which shall serve as a capital cushion to balance the accelerated growth phase of Basisbank and underpin the expansion of the Bank’s lending activities, particularly to small and medium-sized enterprises with greater focus on sustainable investments.
Earlier in June 24, 2024, Basisbank also concluded EUR 5 million worth of senior loan deal with GGF to advance the bank’s E&S practices in line with the best international standards and support the bank in its green economy financing initiatives.
Mutually successful cooperation of Basisbank with its partners GGF and EFSE dates back to the years 2018 and 2019, when the Funds extended generous support in the form of green and local currency financing to the Bank. Through many years of collaboration, Basisbank, GGF and EFSE continue to contribute to the development of business in the country by expanding availability of long-term financing and devoting larger resources to the economy.
“We are happy that our strategic partnership with EFSE and GGF continues with another series of successful transactions. The successfully completed subordinated and senior deals, will strengthen Basisbank's capital base and increase the availability of affordable financing to private SMEs. Our tight collaboration with GGF and EFSE is an important indicator of trust and confidence in the development path of Basisbank. With more than 30 years of presence in the market as one of the leading financial institutions, we have built a strong financial brand in the country, committed to serving the needs of our business and retail customers. I would like to thank our partners for their continued support and look forward to working with them on many more successful deals in the future.” – said David Tsaava, General Director of Basisbank.
EFSE Board of Directors Chairperson, Andrea Hagmann said, "This expanded partnership with Basisbank reinforces our shared commitment to fostering sustainable growth in Southeast Europe. By supporting Basisbank's strategic initiatives, we aim to empower SMEs and drive economic resilience in the region. Together, we are building a stronger, more inclusive financial ecosystem."
"This partnership exemplifies our dedication to advancing green finance in Southeast Europe. By bolstering Basisbank's capital, we are not only supporting their growth but also paving the way for more impactful sustainable investments,” commented Simon Gupta, GGF Board of Directors Chairperson.
For more information on the European Fund for Southeast Europe, please visit www.efse.lu
For more information on Finance in Motion, please visit www.finance-in-motion.com
For more information on GGF, please visit www.ggf.lu
