ProCredit Bank North Macedonia gets green light for $5.7M perpetual bond

What's the deal? North Macedonia's financial regulator has approved ProCredit Bank AD Skopje's plan to issue a perpetual bond worth $5.7M to its German parent company, ProCredit Holding. The instrument — a bond with no maturity date — will bolster the bank's capital base.

Why now? The approval comes shortly after the European Bank for Reconstruction and Development (EBRD) extended a €5M loan to the same bank in early May 2026, suggesting ProCredit Bank is actively strengthening its balance sheet. Perpetual bonds count as additional tier-one capital, making them a tool of choice for banks seeking to meet regulatory requirements without diluting equity.

The signal: The move reflects a broader pattern among Southeast European banking subsidiaries tapping parent companies for capital support. As regional regulators tighten standards in line with EU norms, expect more such intra-group instruments across the Western Balkans.

Read more: seenews.com