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| Description of company and purpose of project |
Mobiasbanca (or the Bank) was founded in 1990 as a private financial institution. Today, Mobiasbanca is the sixth largest commercial bank in Moldova with over 7% of banking sector assets and almost 8% of loan portfolio. Having main business and strong background in corporate lending, Mobiasbanca has also recently focused on SME and consumer lending.
The project is a six-year $5 million senior loan from IFC to enable Mobiasbanca to provide medium-term loans to private Moldovan small and medium enterprises (SMEs) and to the retail sector. The project will enable IFC to support a profitable bank in Moldova to diversify its funding sources and to meet the increasing financing needs of SMEs, a key source of growth and employment in Moldova. |
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| Project sponsor and major shareholders of project company |
| Mobiasbanca is majority-owned by the Development Capital Corporation Moldova (“DCCM”) (64%), a wholly-owned investment subsidiary of a U.S. based equity fund New Century Capital Partners, L.P. ("NCCP"), whose objective is to make diversified equity investments in Eastern Europe and the former Soviet Union. NCCP initially became a shareholder of the Bank in 1997 and subsequently increased its holdings to 64%. |
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| Total project cost and proposed IFC investment |
| The project comprises an IFC investment of $5 million (senior loan). |
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| Location of project and description of site |
| Mobiasbanca provides a wide coverage of products and services to over 40,000 clients through a network of 13 branches and 41 representative offices across Moldova. |
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| Project Development Impact and IFC's Role |
This project will strengthen Mobiasbanca’s funding base and enable it to expand its SME portfolio. By increasing SMEs’ access to much needed term funding, the project is expected to contribute to SME growth and job creation.
IFC’s role in the project is to:
- provide medium- to long-term funding that would otherwise not be available to Mobiasbanca, and
- to help demonstrate the viability of SME lending in a market such as Moldova. |
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| Environmental and social issues - Category FI-1 |
This is a category FI Type 1 project according to IFC's environmental and social review procedure. Mobiasbanca will be required to establish an environmental management system to ensure that activities financed under relevant operations are consistent with applicable environmental, occupational health and safety regulations of Moldova and IFC's Microfinance Exclusion List, designate appropriate individuals who will have responsibility for the environment and who will attend IFC's environmental management workshop or an approved equivalent, and submit to IFC an environmental management plan and annual environmental performance reports.
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| To contact the project company, please write to: |
Nadejda Litvac
Head of International Finance and Documentary Transactions
Commercial Department
Mobiasbanca
Chisinau, Moldova
Phone:+ (373 22) 256347
Fax:+ (373 22) 244182
Email: nadejda.litvac@mobiasbanca.md |
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