Project description
and objectives:
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The proposed project consists in the acquisition of maximum 20% of the equity of the Romanian American Mortgage Credit company (RAMC) for an amount of up to US$ 1.5 million and a loan of up to €10 million. RAMC will use this financing to on-lend for residential mortgages to individuals for acquiring, upgrading and building residential properties.
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Transition impact:
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The project will increase the supply of mortgage finance in Romania, which is very low by international standards. It will have a demonstration effect promoting best-market practices in terms of customer responsiveness, documentation, consumer protection and corporate governance. RAMC also intends to securitise its mortgage portfolio by issuing mortgage-backed securities and foster the development mortgage-backed securities by acting as a conduit for other issuers. It may also foster wider regional markets by participating in cross border issues of mortgage-backed securities. The company will also promote legislative improvement in what concerns mortgage lending and securitisation of mortgage portfolios.
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The client:
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RAMC, an early stage independent mortgage company set up by the Romanian American Enterprise Fund. The United States Agency for International Development is also providing an US$ 2 million technical assistance package to help support the establishment of RAMC.
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EBRD finance:
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Equity: US$ 1.5 million
Loan: €10 million.
Co-financing to be syndicated with other IFIs.
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Total project cost:
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€27.4 million in total (US$ 18 million and €11 million).
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Environmental impact:
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RAMC is required to ensure that a property survey is conducted for each loan as part of its due diligence. The survey should include consideration of potential site contamination, use/presence of hazardous materials in construction, risk of flooding, or seismic activity and compliance with the applicable national environmental, health and safety standards and regulation.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Roxana Vitan
Romanian American Enterprise Fund
Tel:+40 21 210 0701
Email: roxana.vitan@raef.ro
Web site: www.raef.ro
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EBRD contact:
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Alexander Saveliev, Operation Leader: saveliea@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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