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Funding of foreign subsidiaries
Published on 29 March 2018
Slovenia
Zahodna Slovenija
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
Slovene companies, including SMEs, contemplating the expansion of activities to foreign countries or with already active foreign subsidiaries pursuing investments, can receive SID Bank’s long-term loans to fund the related costs.
The loans can be extended either to the company in Slovenia to be used for establishment of an initial investment into a new foreign subsidiary or the recipient of the funding could be the subsidiary alone.
SID Bank is pursuing following goal with implementing the practice:
- investments of Slovene companies abroad,
- development of internationalisation,
- development of small and medium size enterprises.
The loans can be extended either to the company in Slovenia to be used for establishment of an initial investment into a new foreign subsidiary or the recipient of the funding could be the subsidiary alone.
SID Bank is pursuing following goal with implementing the practice:
- investments of Slovene companies abroad,
- development of internationalisation,
- development of small and medium size enterprises.
Resources needed
Loans have to be with tenors above two years while all other features are rather flexible and are defined on a case-by-case basis in accordance with the borrower’s needs.
Evidence of success
5 Slovene subsidiaries abroad were financed in last 5 years.
Potential for learning or transfer
Without a track record in a new county it is usually difficult for a newly established company to raise the funding from local banks. With financing arranged in the country of the majority owner, the subsidiary actually benefits from its financial position and positive business results.
Practice, not limited to SMEs only, implemented in accordance with Programme for internationalisation 2015–2020 and Priority Axis 3 of OP, is transferable in terms of organisational model / implementation process.
Practice, not limited to SMEs only, implemented in accordance with Programme for internationalisation 2015–2020 and Priority Axis 3 of OP, is transferable in terms of organisational model / implementation process.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
SID Bank (Slovene export and development bank)
Slovenia
Zahodna Slovenija
Contact
Senior project manager