Business Irish

Wednesday 28 September 2016

SBCI in negotiations with new funders

Published 02/11/2015 | 02:30

Chief Executive of SBCI, Nick Ashmore pictured alongside Taoiseach Enda Kenny,Tanaiste Joan Burton and Minister for Finance Michael Nooan. Photo: Mark Condren.
Chief Executive of SBCI, Nick Ashmore pictured alongside Taoiseach Enda Kenny,Tanaiste Joan Burton and Minister for Finance Michael Nooan. Photo: Mark Condren.

Two additional funding ­sources for the Strategic ­Banking Corporation of ­Ireland (SBCI) totalling about €450m could be unveiled within months, the SBCI has said.

  • Go To

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.

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business