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| 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. |
Summary of Project Information (SPI) |
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| Project number | 11184 |
| Project name | Banca pentru Mica Industrie si Libera Initiativa: Mindbank, S.A. |
| Country | Romania |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | ATE Bank Romania S.A. |
| Environmental category | FI-1/2 |
| Date SPI disclosed | November 22, 2002 |
| Projected board date | February 15, 2003 |
| Status | Active |
| Previous Events | Invested: January 4, 2005
Signed: December 9, 2004
Approved: June 9, 2004 |
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| Project sponsor and major shareholders of project company |
Mindbank's three largest shareholders as of December 31, 2001 were:
UCECOM, the Romanian National Association of Handicraft and Production Cooperatives (24%);
Mr. A.H. Bahman, a Kuwaiti citizen with strategic investments in 30 companies internationally (15.4%); and
MISR Romanian Bank with a (9%).
MISR Romanian Bank is a joint-venture institution between Egypt's Banque MISR and Romania’s Banca Comerciala Romana.
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| Total project cost and proposed IFC investment |
The project involves an IFC investment of $5 million in the form of a convertible senior credit line for up to eight years.
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| Location of project and description of site |
Mindbank is headquartered in Bucharest and has 11 branch offices located in Bucharest, Brasov, Baia Mare, Braila, Constanta, Galati, Oradea, Pitesti, Tārgu Jiu, Craiova and Iasi.
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| Description of company and purpose of project |
Mindbank was incorporated in Romania in 1990 as the "Bank for Small Industry and Free Enterprise". Mindbank is licensed by the National Bank of Romania to conduct all commercial banking activities and is principally engaged in carrying out banking services for small enterprises. The purpose of the credit line would be to extend the tenor of small business loans and, with the support of external technical assistance, develop a project finance capability geared to small enterprises, local cooperatives and microentrepreneurs. IFC's convertible credit line will facilitate the entry of a strategic technical partner, which is expected to lead to an improvement in Mindbank's lending technology and enhance its long term perspective as a sustainable niche player in the Romanian banking sector.
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| Environmental and social issues - Category FI-1/2 |
Mindbank will be required to develop and implement procedures to screen loan applications for compliance with host country environment, health and safety requirements and consistency with IFC's Microfinance Exclusion List. Mindbank's environment staff will need to attend the IFC environmental training course for financial institutions. Mindbank will also be required to submit annual environmental reports to IFC.
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| To contact the project company, please write to: |
Mr. Emil Radu, Deputy Chairman,
24 Calea Grivitei, Bucharest - Romania |
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