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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 | 9934 |
| Project name | Moldovan Banks Credit Line |
| Country | Moldova |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Moldinconbank S.A. |
| Environmental category | FI |
| Date SPI disclosed | April 26, 2000 |
| Projected board date | May 26, 2000 |
| Date revised SPI disclosed | May 1, 2000 |
| Status | Completed |
| Previous Events | Invested: April 24, 2001
Signed: January 30, 2001
Approved: June 20, 2000 |
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| Project sponsor and major shareholders of project company |
| Moldinconbank, Mobiasbanca, and FinComBank are privately owned Moldovan banks. With the exception of Mobiasbanca, whose major shareholder is an American investment fund, the other two banks are owned by several local minority shareholders and, currently, do not have a foreign technical partner. |
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| Total project cost and proposed IFC investment |
| The total proposed IFC investment would amount to up to $6.5 million for IFC's own account, including quasi-equity in the form of subordinated convertible loans with a minimum of $1.5 million and maximum of $3.0 million. The individual lines of credit to each bank would range between $1.5 and 3.0 million. |
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| Location of project and description of site |
| All three banks are located in Chisinau, Moldova. Two of the three banks have extensive nationwide branch networks. |
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| Description of company and purpose of project |
| The three banks are relatively small, well-managed private banks oriented to lending to the small and medium enterprise (SME) sector. All three banks will receive a broad technical assistance (TA) from a first class Dutch bank, and IFC credit lines. The TA will strengthen their banking skills and term lending expertise. By providing credit lines to local banks to be on-lent to private SMEs, IFC will support the Moldovan SME sector. In this sense, IFC will facilitate the growing local base of entrepreneurs' access to term financing, which is scarce in Moldova. IFC has brought a reputable Western bank into the project to provide TA to the banks, with a view to transforming them into sustainable, competitive financial institutions. The ultimate goal of the project is to help create sustainable banks and creditworthy private enterprises, which could eventually become attractive investment opportunities for foreign investors. |
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| Environmental and social issues - Category FI |
This is a category FI Type 1/Type 2 project according to IFC’s environmental and social review procedure. Each of the three banks has committed to developing an environmental management system designed to ensure that SME clients comply with environmental, health and safety requirements of Moldova. With respect to the SME credit line, subprojects will be required to also comply with applicable IFC environmental and social safeguard policies and guidelines. Each bank will submit an environmental management plan to IFC for review prior to disbursement and annual environmental performance reports thereafter.
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| To contact the project company, please write to: |
| sramaswami@ifc.org |
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