SBCI in negotiations with new funders
Published 02/11/2015 | 02:30
Two additional funding sources for the Strategic Banking Corporation of Ireland (SBCI) totalling about €450m could be unveiled within months, the SBCI has said.
This would take the lending potential of the State-backed bank to more than €1.2bn.
Providers to the SBCI, set up to help provide cheap loans to small and medium-sized businesses, include the European Investment Bank, the Ireland Strategic Investment Fund, and German development bank KfW.
But negotiations are under way with two additional funders with an announcement expected by the end of this year or early next year.
In July the organisation revealed that around €45m worth of loans were drawn down in its first three months of lending.
SBCI chief executive Nick Ashmore said the pace of lending has continued and is growing. "We're seeing larger loans. At the end of June the largest loan we did was about a million, now we're seeing loans of up to four and five million," Mr Ashmore told the Irish Independent.
"We're seeing the largest loan around things where people are building major assets like nursing homes."
The SBCI works through third-party lenders, giving them money at low interest rates which are then passed on to SMEs. It said lending is taking place throughout Ireland and across all sectors. The body has up to €800m to lend as part of its first phase of operations.
The European Investment Bank has provided €400m, the Ireland Strategic Investment Fund is giving €250m, and KfW is providing €150m.
The two new additional funders are expected to provide around €450m.