Patria Credit IFN signs a 3-million-euro loan with the European Investment Fund

The European Investment Fund (EIF) signed a 15 million RON (3 million EUR) subordinated loan agreement with Patria Credit IFN, part of the Patria Bank group, in a transaction supported by InvestEU, the financing instrument designed to generate additional investments worth more than €372 billion by 2027 in support of the European Union’s political priorities.

The operation will allow Patria Credit to further expand its operations, in terms of the number of clients and the size of the portfolio, especially in the field of micro-farms with limited access to traditional loans.

At the same time, the 10-year loan aims to improve Patria Credit IFN’s ability to attract additional external financing resources. This subordinated loan is granted under the InvestEU Investments for Capacity Building product.

This transaction extends the partnership between the EIF and Patria Credit, which began 11 years ago, through various support instruments, thanks to which Patria Credit granted loans benefiting from an EU guarantee for micro-enterprises, especially in rural areas, thus improving access to financing for these entrepreneurs. So far, over 4,200 credits have reached local businesses through the EaSI and InvestEU programs, an equivalent of over 129 million RON.

Marjut Falkstedt, Executive Director of the EIF, said: “Capacity building tools have proven to be a very useful tool, connecting European institutions with local partners to make it easier to access funding for the smallest actors in economy. That’s why, through the InvestEU program, we are happy to join forces again with Patria Credit, to strengthen their capital base and ultimately to generate new support for Romanian farmers and vegetable growers in difficult times.”

“This new loan means a lot to us. On the one hand, it proves the trust that FEI gives us, on the other hand, it attests to our sustained growth in recent years and our dedication to rural microfinancing in Romania. In the more than 19 years of experience with rural entrepreneurs, and beyond, I have learned that financial inclusion is one of the important steps for the development of the economy. The partnership with FEI is a strategic one and helps us to develop and continue our mission of improving the level of financial inclusion in Romania,” said Raluca Andreica, General Director of Patria Credit.

Patria Credit IFN registered a net profit of 1.55 million euros in 2022 and reported a 22 percent increase in the portfolio, to a value of 32.5 million euros.