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| Summary of Project Information (SPI) |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
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| Project number | 22323 |
| Project name | MiroBank C Line |
| Country | Romania |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | ProCredit Bank S.A. |
| Environmental category | FI-1 |
| Date SPI disclosed | April 27, 2004 |
| Projected board date | June 30, 2004 |
| Status | Completed |
| Previous Events | Invested: July 26, 2004
Signed: June 25, 2004
Approved: June 24, 2004 |
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| Description of company and purpose of project |
Microfinance Bank Romania S.A. (MIRO Bank) is a licensed commercial bank, regulated and supervised by the National Bank of Romania. MIRO Bank, which began operations on July 1, 2002, is a specialized provider of financial services to micro and small businesses as well as low-income individuals in Romania.
The purpose of the IFC investment is to assist MIRO Bank to achieve outreach on a scale that will ensure the availability of financial services to the vast numbers of the population who are currently marginalized by the formal financial sector, and to facilitate the organization’s permanent self-sufficiency and sustainability. |
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| Project sponsor and major shareholders of project company |
| MIRO Bank’s sponsor is Internationale Micro Investitionen AG (IMI), a Frankfurt-based investment company specializing in commercial microfinance. MIRO Bank’s shareholders are: Commerzbank (20.83%); DEG (20.83%); EBRD (20.83%); IFC (19.02%); IMI (11.94%); and FMO (6.57%). |
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| Total project cost and proposed IFC investment |
| The total project cost and the proposed IFC investment is a $10 million credit line. |
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| Location of project and description of site |
| MIRO Bank is headquartered in Bucharest and has seven branches (Bucharest, Cluj, Brasov, Timisoara, Constanta, Craiova and Lasi) and two agencies in Bucharest (Militari and Pantelimon). Through its branch network, MIRO Bank serves micro and small businesses across Romania. |
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| Project Development Impact and IFC's Role |
-Development Impact:
Microenterprises and small businesses account for the majority of private sector and employment for low-income populations in Romania and other emerging markets. Yet, despite their importance, these businesses face serious obstacles to viability and growth because they have limited access to financial services such as credit, savings, payment and money transfers. The development of MIRO Bank has been strongly developmental -- in terms of its high economic impacts, stimulus for business growth, employment creation and promotion of commercially-oriented microfinance techniques.
- IFC Role:
IFC has a strong track record as risk-taking investor, strategic advisor and technical assistance provider to financial institutions, and has played a significant role in developing commercial microfinance globally. Experience shows that IFC’s investment in microfinance contributes to attracting other institutional and private sector investors to participate in the industry, thus laying a foundation for the growth of commercial microfinance.
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| Environmental and social issues - Category FI-1 |
This is an FI Type 1 project. MIRO Bank must require that investments under relevant operations including sub-borrowers and sub-projects financed with the proceeds of the IFC loan meet host country environmental, health and safety requirements and be consistent with IFC’s microfinance exclusion list. IFC will assess MIRO Bank’s capacity for environmental review and its environmental management system.
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| To contact the project company, please write to: |
Mr. Axel Hummel, General Manager
Str. Faharas 6, Bucharest, Sector 1
Romania.
Fax: +40-21-422-8383 |
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