BGL BNP Paribas has announced the launch of a new activity to support Luxembourg businesses in the long term.
With BGL BNP Paribas Development, BGL BNP Paribas is launching a new business activity that will allow it to help Luxembourg businesses by acquiring minority interests. Through direct investment in these companies, the bank intends to play a role in their organic and external growth plans and to support them in business transfers.
BGL BNP Paribas Development will focus on unlisted commercial, industrial and technology companies in Luxembourg, having revenue of more than €10 million, a profitable business and growth prospects. The aim is to provide companies with the long-term resources needed to catalyse their growth on the local or international market.
Investments will take the form of minority interests alongside either existing or new shareholders, over an investment horizon of five to ten years. The total amount of investment planned for the next five years is €50 million.
BGL BNP Paribas Development will also facilitate companies’ access to the knowhow of the BNP Paribas Group’s global network and experts.
Anne-Sophie Dufresne, member of the BGL BNP Paribas Executive Committee and Director of Corporate Banking, explained: “With BGL BNP Paribas Development, we are offering Luxembourg companies the chance to access the resources they need to secure and accelerate their growth, or transfer their business smoothly. This is a further reflection of our bank’s commitment to SMEs, which is particularly important in the current circumstances”.
Béatrice Belorgey, Chair of the Executive Committee of BGL BNP Paribas and Country Head of the BNP Paribas Group in Luxembourg, added: “This new activity is part of BNP Paribas’s strategy to double the amount that the group invests directly in small and medium-sized companies and mid-caps. The creation of this new business activity shows the importance of the corporate sector for our bank, as well as our conviction that Luxembourg offers a resilient, dynamic backdrop conducive to value creation".