ProCredit Holding

The ProCredit Holding is the parent company of a development-oriented group of commercial banks for small and medium enterprises (SMEs), which operate in South Eastern and Eastern Europe, Ecuador, and Germany. The business model of the group is based on socially responsible banking which strives to be transparent, efficient and profitable, and thus sustainable.

The group’s core business consists of offering banking services to small and medium-sized enterprises (SMEs). As their “Hausbank”. i.e. clients’ first point of contact for financing and deposits as well as for account and payment services, ProCredit banks focus on innovative, fast-growing enterprises with stable and formal business structures that are firmly established in the markets in which they operate. Through its work, the group aims to make a contribution to creating jobs, enhancing capacity for innovation, and encouraging investments in ecological projects. An emphasis is also placed on expanding the group’s green loan portfolio and promoting local production, especially in agriculture. In addition to serving SMEs, the ProCredit group also pursues a direct banking strategy for private clients, particularly the growing middle class.[1]

ProCredit Holding, which began as Internationale Micro Investitionen AG, was founded in 1998 and is currently managed by Sandrine Massiani, Dr Gabriel Schor and Dr Gian Marco Felice. The company has a Fitch Rating of BBB. As the group’s superordinated institution, it is regulated by the German and European supervisory authorities.

According to the group’s annual report for 2019, the total assets of the ProCredit group amounted to approximately EUR 6.7 billion. It holds customer deposits of about EUR 4.3 billion and has a gross loan portfolio of around EUR 4.8 billion.[2]

A comprehensive environmental management system with a focus on sustainability is an integral part of the corporate strategy of the ProCredit group. The system in place consists of three pillars: internal environmental management (Pillar I), the management of environmental and social risks in lending (Pillar 2) and green finance (Pillar III). ProCredit banks are not allowed to finance business activities that are problematic from a social, moral or ecological standpoint, or that fail to comply with health and safety regulations. The promotion of green loans to finance projects in the fields of energy efficiency and renewable energies (Pillar III) is the strategic focus here. In 2019, approximately 30% of the group’s total loan portfolio growth was in green loans.[3]