Yurii Voievoda’s Post

Lithuanian businesses and creative industries get €70 million credit boost under European Investment Fund (EIF) deal with mano.bank The European Investment Fund (EIF) is providing Lithuanian bank Mano Bankas guarantees to #expand an existing credit line for small and medium enterprises (SMEs) by €70 million. The move by the EIF, which is part of the European Investment Bank (EIB) Group, unlocks €25 million for SMEs to bolster liquidity weakened by the Covid-19 pandemic and €25 million for a range of climate-adaptation steps. A further €15 million will be available to SMEs in the creative industries including publishing, audio-visual art, video gaming, radio and television. The EIF guarantees are being extended under the European Commission`s InvestEU programme. They come on top of a 2022 EIF guarantee agreement with Mano Bankas that unlocked more than €40 million in new loans for businesses in Lithuania. “Our partnership with with Mano Bankas under the InvestEU programme aims to boost the competitiveness of the Lithuanian economy,” said EIF Chief Executive Marjut Falkstedt. “Together we have created a considerable credit line to finance businesses that will generate new employment opportunities and accelerate the transition to a carbon-neutral economy. Furthermore, with financing for the creative industries, we are supporting an important – yet underserved – part of the Lithuanian economy.” Financing for climate adaptation will be for projects to introduce renewable-energy sources and improve energy efficiency in buildings. SMEs will be able to invest in low-emission and zero-emission transport projects as well as in information and communication technology upgrades that result in lower energy consumption. “We are continuing our successful cooperation with the EIF,” said Mano Bankas Chief Executive Officer Giedre Blazgiene. "We have already granted loans to the Lithuanian small and medium-sized enterprises for more than €32 million under the previous agreement signed in 2022. The scope of the financing programmes has been expanding and thus, such cooperation will allow financing the business that has suffered because of the pandemic, as well as the business developing ecological and cultural projects,” says CEO of Mano Bankas, Mrs Giedre Blazgiene. The latest EIF-Mano Bankas partnership expands InvestEU support in Lithuania for SMEs with cultural, artistic or other creative activities. The credit line at Mano Bankas and the EIF guarantees help ensure the flow of credit in Lithuania to a sector that has long faced financing obstacles because its business models differ from traditional ones. Financing is available to companies operating in, among other areas, publishing, art galleries, theatres, radio, TV and computer applications. To share your startup story write us on - [email protected] #eif

How can #investors close the #SMEfinancinggap? While small and medium enterprises (#SMEs) may, by definition, be #small, their #collectiverole in an #economy is large. This is especially true in #lowerincomecountries, where they account for seven out of every ten jobs on average. Access to #suitablefinance remains a #challenge for #SMEs. The SME financing gap in #developingcountries is estimated at $4.1 trillion. The #answer seems obvious: increase #supply. But the #persistence of this problem tells us it is not so easily solved. The #financingneeds of SMEs are #varied, so the #solutions to address these needs must be #varied too. In new report by British International Investment they look at the #ingredients to successfully support SMEs. #SupportingSMEs has always been a fundamental part of what #BII does.   https://lnkd.in/ejneAdww

OECD Report Highlights Challenges and Opportunities for SME Financing The OECD’s latest report on SME financing reveals significant impacts due to global economic shocks. Rising inflation has tightened lending conditions, limiting access to finance for SMEs. The report emphasizes the need for innovative solutions and supportive policies to bridge the financing gap and support sustainable growth for SMEs. 📊 Learn more about the findings and implications for SMEs in Southeast Asia. https://lnkd.in/d339UUGn #smefinancing #sme #oecd #fintech #kredithero #financing

Most of Southeast Asia’s economy is made up of small and medium-sized enterprises (SMEs), which account for nearly half of the region’s GDP. Many of them have highly complex supply chains that involve many stakeholders. Managing such complex interdependencies is extremely complex, and financing them, especially as an SME, is nearly impossible. Procuring and trading are often done manually with tedious, long and complex risk assessments hindering access to vital financing. I’ve owned or managed SMEs, from food factories to tech companies, for 15+ years. The pain the owners of these SMEs feel in managing and funding their supply chains is extreme. Doxa Holdings International is solving the financing challenges these SMEs face through anchor financing, where SME suppliers and subcontractors monetise their invoices with large buyers and leverage the buyers’ credibility to obtain credit or financing. By digitalising the procurement process, where every transaction record is verified and recorded, financial institutions can leverage the transaction data to provide invoice financing to SMEs. I’m thrilled we’ve invested in Doxa, and I look forward to many years of supporting their vision to solve these painful problems for SMEs across SE Asia. Edmund Ng 黄麒榮, Leon Yeo, Henry Kwan

Development & climate finance are complex and deserve much more discussion and debate about how #DFIs can mobilize more capital. This is a provocative step forward...I do believe that simply moving more grant capital from DFIs is naive. However, the concept of deploying patient capital through bonds, guarantees, and adding TechAssist grants is critical. Lending in local currencies is also very interesting - a challenge DFIs should and could meet...#CAFIID, #FinDevCanada

Goldman Sachs and Abu Dhabi’s Mubadala ink $1 billion partnership to invest in Asia Pacific Goldman Sachs and Abu Dhabi sovereign wealth fund Mubadala signed a $1 billion private credit partnership to co-invest in the Asia-Pacific region, with a particular focus on India, the institutions have said in a joint statement. The separately managed account, termed the “Partnership,” will be managed by Private Credit at Goldman Sachs Alternatives, with a staff based on the ground in various markets across the region. It will invest the long-term capital in “high quality companies ... across the private credit spectrum” across a number of Asia-Pacific markets. The news follows Goldman’s 2023 expansion in the Middle East with the opening of its office in Abu Dhabi Global Market, the financial center of the United Arab Emirates capital. It also comes as the UAE and other Gulf states increase their economic footprint in India, which is set to be the fastest-growing G20 economy for the 2023-24 fiscal year. The UAE in October 2023 announced a target to invest $75 billion in India over a period of time, while Saudi Arabia set an investment target in the country of $100 billion. “The opportunity in private credit in Asia Pacific is expansive,” Greg Olafson, global head of private credit at Goldman Sachs Alternatives, said. “With strong economic growth in the region and favorable conditions for private lenders to support the growth of leading companies by providing flexible, long-term capital, we believe we are at the early stages of a defining era for private credit in Asia Pacific.” He said the partnership with Mubadala will enable the bank to expand its “long-established investment focus on the region.” Omar Eraiqat, Mubadala’s deputy CEO of diversified investments, said that the Goldman Sachs partnership “compliments our aspirations to grow our private credit exposure in APAC, a region that is central to Mubadala’s strategic growth initiatives.” Mubadala Investment Company manages a global portfolio of $276 billion spanning six continents and a range of sectors and asset classes, according to the firm, with a focus on diversification of the UAE economy. To network with the wealthiest businessmen from the Persian Gulf and around the world: Join us: The GCC Royal Investments Club | نادي الاستثمارات الملكي الخليجي WhatsApp: https://lnkd.in/gd77VJ4U Note: Only verified global investors, private offices, business icons and established entrepreneurs will be admitted.

Small and medium enterprises (SMEs) will receive cheap financing from banks to help them grow on a sustainable footing. #inp #independentnewspakistan #inp_wealthpk #SME Read Article, click on ⬇️ link

An integrated European capital market is vital for boosting businesses, especially SMEs and startups, providing them with diverse financing options beyond traditional bank loans. Regulatory reforms and innovative financial tools like European long-term investment funds are crucial for attracting private investment into SMEs. A further analysis reveals that these initiatives increase SME visibility to investors and ease cross-border lending within the EU are needed to maximise the benefits of a unified capital market. #EuropeanCapitalMarket #SME #BusinessGrowth

This is great insight. Thanks Andrew Herscowitz for sharing. One comment would be related to the second point about lending in local currency, when appropriate. It is great that MDBs look to lend locally, however what amplifies the impact is when the costs associated with hedging and/or translation costs are absorbed by the MDB rather than passed to the client. Again, great to see local currency lending making it into the top two!

IP-BACKED FINANCING FOR SMEs in the GAMBIA There will come a day when an entrepreneur, inventor or business will use their IP assets (patent, trademark, etc.) as collateral for a loan, in The Gambia. Yet, this will require a huge commitment from our financial institution to make it work. This will be a gamechanger for the climate of innovation and creativity in the Gambia since there will be access to finance for young entrepreneurs and SMEs. As a country, the Gambia has been gifted with the best of talents — from engineering, chemistry, physics, arts, and many other fields. These creative minds have developed many inventions that have been lost or left obsolete because they lacked financial support. It has made their hard work, energy and resources to be in vain when it has the potential of yielding millions of dalasi for them. For that reason, we must act swiftly to support our creative industry and inventors with the prerequisite resources to accelerate the growth of their ideas. This will ensure that the novel ideas are tested, improved, protected and commercialized for financial gains. Thereby, jobs will be created, and revenues will be generated for our socioeconomic development. It is therefore important that the government and relevant stakeholders to engage the financial institutions — from the Central Bank down to the macro and micro financial bodies. This will lead to the creation of policies and systems that will allow loans for entrepreneurs to further expand and develop their businesses. It is currently being done in England, and other countries are following suit. So, why not the Gambia when we have a brilliant youthful population? https://lnkd.in/dEJMUzEd