Project description
and objectives:
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Establishment of a microfinance bank to provide financial services to micro
and small enterprises (MSEs) in Romania.
EBRD participated in the capital increase of ProCredit Bank Romania for a
total amount of €4.2 million in 2003 and €4 million in 2006 in order to meet
the minimum capital requirements set by the National Bank of Romania.
EBRD is now planning to participate in the third capital increase for a total
amount of €4.0 million in order to fulfil capital adequacy ratio requirements
and support further expansion of MSE loans in Romania. EBRD’s share of the
capital increase will be € 0.66 million or 16.53% of the total.
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Transition impact:
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The project is expected to have a significant impact on the transition
process. ProCredit Bank Romania will continue to provide support to MSEs that
would otherwise have little or no access to formal sector finance. Moreover,
PCB Romania will also increase its agricultural lending operations to cater
for MSEs in rural areas. PCB Romania also supports the development of the
financial sector by operating as a best practice institution committed to the
principles of complete transparency and strong corporate governance.
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The client:
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ProCredit Bank Romania (formerly MIRO Bank) was established in April 2002 by
EBRD (22.5%), together with Commerzbank (22.5%), IFC (22.5%), IMI (10%), and
DEG/KfW (22.5%), with a total equity capital of €8.4 million. Since the
beginning of its lending operations ProCredit Bank has opened 31 branches in
whole in Romania. From April 2002 through June 2007 ProCredit Bank Romania
disbursed over 70,000 loans to MSEs for a volume of over €400 million and an
average loan amount of just under €6,000. The outstanding loan portfolio at
end-June 2007 consisted of about 33,700 loans for a total amount of €184
million.
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EBRD finance:
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Initial investment: Equity investment of US$ 2.025 million (€1.9
million) for a 22.5% share. The first capital increase in the amount of
US$ 787,500 (€732,375) was accompanied by a senior loan of US$ 10 million for
on-lending to MSEs, which was partially syndicated in the commercial market.
The EBRD participated in the second capital increase (for a total of
€4 million) in the amount of €0.66 million and its total shareholding will
remain at 16.53%.
The EBRD will participate in the third capital increase for a total of €4
million. The EBRD will invest in €0.66 million and its total shareholding
will be maintained at 16.53%.
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Total project cost:
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Total project cost will be €4.0 million, of which 16.53% or €0.66 will be
EBRD’s share.
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Environmental impact:
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ProCredit Bank Romania will continue to carry out its operations in accordance
with the EBRD's “Environmental Procedures for Local Banks”. In implementing
these procedures, it will require its borrowers to comply, at a minimum, with
national/local health, safety, environmental, and public consultation
requirements.
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Technical
cooperation:
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Over time the EBRD has supported PCB Romania with technical assistance funds
provided under the US/EBRD SME facility. TC graduation took place in January
2006.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Michael Kowalski
General Manager
ProCredit Bank Romania
Tel: + 40 21 201 6000
Fax:
+ 40 21 201 6002
Email: michael.kowalski@procreditbank.ro
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EBRD contact:
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Yasuko Goto, Operation Leader: gotoy@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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