Up to EUR 25 million senior secured loan provided by the EBRD and a local parallel lender to finance the acquisition of Paypoint Romania by Innova Capital, and thereafter support the company's initiatives to digitalise its consumer payments services.
Paypoint Romania is a vital and trusted actor in Romania, allowing Romanians to pay their utilities and telecom bills, top-up their mobiles and receive remittances from abroad at the company's collection and sales points. With an extensive network of 19,000 sites across the country, 81% of Romanians live less than 500 metres away from one of the company sites. As Romania is progressively evolving from a cash-based economy to an enhanced use of electronic payment infrastructure (card payments, mobile wallet, etc.), Paypoint Romania accompanies this transition with the launch of new electronic services such as mobile consumer application, automatic vending machines (AVMs) and card-enabled point- of-sale terminals, which provide additional value to consumers and merchants.
ETI score: 66
- Under the "Competitive" quality, the acquisition by Innova will trigger operational changes within Paypoint Romania, leading to significant improvements of the company's competitiveness to levels in line with best internationally available standards. These operational changes include the digitalisation of the company's services and extension of the company's services portfolio offered to consumers and retailers.
- Under the "Integrated" quality, the acquisition qualifies as net FDI inflows, which will support the rollout of significant innovative digital services in Romania. This will increase overall access to innovative payment methods, improve merchants' efficiency, and ultimately drive the development of the omni-channel retail market and economic growth.
STAR PAYMENTS SRL
Paypoint Romania is the leading over-the-counter bill payments services provider in Romania with a 24% market share and offers additional services, including mobile top-ups and money transfers. New business initiatives and future growth opportunities are related to the digitalisation of the company's services, with the roll-out of mobile consumer application, automatic vending machines (AVMs) and point-of-sales (POS) terminals.
EBRD Finance Summary
Dual-tranche senior secured loan in an amount of up to EUR 19 million, financed by the EBRD.
Total Project Cost
Total Project Cost: (i) Up to EUR 25 million senior secured loan provided by EBRD and a local parallel lender; and (ii) equity contribution from the Sponsor, INNOVA/6 SCA SICAV-RAIF.
The Bank is additional through:
(i) Offering a financing structure that is not available in the market from commercial sources on reasonable terms and conditions, with the EBRD providing a long-term and innovative financing, tailored to the sponsor's needs to implement the value creation plan;
(ii) The mobilisation of additional commercial funding through a local parallel financing structure otherwise not achievable, via the participation of a local parallel lender;
(iii) High standard-setting whereby the client seeks/makes use of EBRD expertise on higher financial standards, including through financial covenants. The EBRD financing will lead the company to improve its business and financial discipline beyond the current market practices for private companies through the adoption of financial covenants and IFRS audit of financials.
Environmental and Social Summary
Categorised C under the 2019 Environmental Social Policy (ESP) with low risk. Environmental and Social (ES) issues associated with the Bank's lending to the company, a payment technology company, are likely to be limited. ES Due Diligence (ESDD) has been carried out internally using the Bank's Corporate ESDD Questionnaire. Overall, the company shows compliance with PR2 and 4, with a few outstanding points regarding PR9 compliance still under review which will be finalised once the Sponsor has taken control of the company. There is no GET share associated with this transaction.
Technical Cooperation and Grant Financing
Company Contact Information
Innova Capital Rondo ONZ 1, 35th floor 00-124 Warsaw, Poland
PSD last updated
06 Apr 2021
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