Provision of a three-year senior unsecured loan of up to EUR 15 million to Mobiasbanca - OTP Group ("Mobiasbanca") under the SME Competitiveness Programme in the Eastern Partnership for on-lending to eligible micro, small and medium enterprises (MSMEs). The loan will be available in three tranches of EUR 5 million each. In addition to long-term financing, eligible sub-borrowers will receive technical assistance funded by the European Union and grant support in the form of investment incentives upon the completion of their investment projects.
This project was approved in the context of the Bank's response to the Covid-19 pandemic. To avoid delays to the delivery of this project, the Bank's
President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to Covid-19 and this deviation can be found on our website.
The SME Competitiveness Programme in the Eastern Partnership is a follow-on facility of the existing FI DCFTA Blended Finance Programme (DCFTA), designed for Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine to support upgrades in micro, small and medium-sized enterprises (MSME) to European Union (EU) standards. The proposed project will enable Mobiasbanca to extend loans for investment purposes to local SMEs, financing upgrades of technology and equipment necessary to meet EU standards in terms of product quality, health and safety measures and environmental preservation and thus will help businesses to become greener and more competitive.
ETI score: 75
"Competitive": Mobiasbanca will further expand its MSME portfolio with a focus on financing investments leading to compliance with EU directives, facilitating Moldovan MSMEs increased competitiveness.
"Resilient": Mobiasbanca will be expected to maintain adequate portfolio quality.
MOBIASBANCA - OTP GROUP SA
CB Mobiasbanca - OTP Group S.A. is 98.3% owned subsidiary of OTP Bank Nyrt, Hungary (OTPH), ranked 4th (out of 11) largest bank in Moldova in terms of total assets (EUR 643m) and market shares of 17% and 14.5% on loans and deposits, respectively as of January 2021.
EBRD Finance Summary
Total Project Cost
Key sources of additionality under the project are (i) Financing structure (long-term tenor in support of investments by Moldovan MSMES ) and (ii) Knowledge, innovation and capacity building (technical assistance under the programme to the banks and MSMEs will support timely realisation of EU-compliant investments in Moldova).
Environmental and Social Summary
Categorized FI (ESP 2019). Mobiasbanca will be required to continue to comply with Performance Requirements 2, 4 & 9, the EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans and to continue to submit annual environmental and social reports to the Bank. Mobiasbanca's borrowers will be required to comply with applicable national environmental, health and safety and labour requirements.
The project is consistent with the EBRDs Green Economy Transition (GET) approach, aiming to achieve 70% GET share.
Technical Cooperation and Grant Financing
MSME sub-borrowers will benefit from financial incentives (up to 10-15 per cent of the lower of sub-loan disbursed amount or investment cost) for eligible sub-projects, while Mobiasbanca will receive technical assistance from dedicated consultants towards investment projects preparation and implementation.
TC and non-TC source: European Union Neighbourhood Investment Platform.
Company Contact Information
PSD last updated
15 Apr 2021
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