The European Fund for Southeast Europe (EFSE) has granted a EUR 8 million Basel III-compliant Tier 2 Capital subordinated loan to Patria Bank to strengthen its capitalisation and step up its lending to power MSMEs growth.
The new financing will enable Patria Bank to expand its dedicated support to local MSMEs with special focus on farmers and agricultural businesses to help them embrace sustainable practices, invest in their businesses, and increase resilience. To drive sustainable development and create lasting impact, the financing will be complemented with dedicated expert advisory services to equip the Bank and its clients with valuable knowledge and tools.
Additionally, to achieve a greater development impact, the maturity of the existing subordinated loan granted by EFSE to Patria Bank in 2022 in the amount of EUR 7 million has been extended to 2032.
Oxana Bînzaru, Regional Director at Finance in Motion, co-manager of EFSE, said, “We are excited to deepen our strategic partnership with Patria Bank and power MSMEs’ expansion, unlocking new opportunities for business growth and sustainability. A solid partnership that aims at delivering meaningful economic value for long-term development and resilience, creating pathways to sustainable farming, innovation and visionary agribusiness in Romania.”
“One of the strategic priorities of Patria Bank Group is to support the entrepreneurial environment in Romania and the new financing from EFSE represents a significant step forward in strengthening our ability to provide even greater support to local entrepreneurs, particularly in rural and agricultural areas. The subordinated loan will strengthen our capital base and enable us to further expand lending to MSMEs and microbusinesses, helping them grow sustainably, increase resilience, and adopt modern practices. We value EFSE’s continued trust in our vision and shared commitment to inclusive, long-term development.” stated Valentin Vancea, CEO of Patria Bank.