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| Project sponsor and major shareholders of project company |
| Uni Credito (Italy), UCI is currently the primary shareholder of UCL with 100% ownership. UCI is one of the largest banking groups in Italy with 68,439 employees , 4,558 branches, and total assets of Euro 238,256 million. UCI's principal shareholders are Cariverona, Cassa di Risparmio di Torino, Cassamarca, Allianz, Max Mara, Luxottica, and the Commercial Union and Société Générale groups. UCI has expanded quite aggressively in the last few years in Southern and Central Europe with presence in Turkey, Croatia, Poland, Slovakia, Czech Republic, and Romania among others. UCI currently ranks as the third European Bank in Central and Eastern Europe. |
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| Total project cost and proposed IFC investment |
| IFC’s proposed investment in UCL will be in the form of an A Loan of up to $10 million equivalent. |
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| Location of project and description of site |
| UCL is currently based in Bucharest. However, the company is looking at setting out a branch network in the coming year. |
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| Description of company and purpose of project |
Unicredit Leasing Romania S.A (UCL ). formerly named Demir Romlease S.A. (Romlease or the Company), is a fast-growing joint stock leasing company established in 1994 and based in Bucharest, Romania. IFC was one of the founding shareholders of the company, the first leasing company in Romania, and has been a mainstay of the company through some lean years, as described in more detail below.
The investment would support the further growth of UCL's leasing book on a sound financial basis. Now that the company is on a stable footing, with strong shareholders, and tight credit screening and monitoring policies in place, it is proposed that through this credit line, IFC remains an active supporter of the company.
The leasing market has been growing relatively fast in Romania. The total market is currently estimated at about $1 billion. The company targets middle size and large companies. With EU accession projected to occur in the next three or four years, the demand for medium term financing (of which leasing is an attractive alternative, especially for smaller companies) is expected to grow, as Romanian companies improve their environmental and quality standards, in order to be more competitive, in a larger EU market.
IFC’s focus has been to build and strengthen financial intermediaries in Eastern Europe. The leasing sector in Romania is developing and IFC believes that there is a significant opportunity to accelerate its growth. By granting this loan, IFC will help expand a reputable leasing company in Romania and strengthen the leasing industry. |
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| Environmental and social issues - Category FI-1 |
This is an FI type 1 project according to IFC's environment and social review procedure. UCL should demonstrate that the EMS developed under Romlease is adequate for this investment, and that the individuals trained are still managing environmental issues.
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| To contact the project company, please write to: |
Unicredit Leasing Romania S.A.
Calea 13 Septembrie #90
050726 Bucuresti – Romania
Fax: +40-21-403-4420 |