Provision of a senior unsecured loan to Garanti Leasing Romania in the amount of up to EUR 10 million for on-lending to local micro, small and medium-sized enterprises (MSMEs) in Romania under the Financial Intermediaries Framework (FIF).
The proceeds of the loan will be used to finance local micro, small and medium-sized enterprises (MSMEs) to ensure their uninterrupted access to finance as the economy continues to recover from the Covid-19 pandemic. At least 30% of the proceeds will be directed to finance Green Economy Transition (GET) eligible investments.
ETI score: 60
The project will support the Financial Intermediary Framework qualities by enhancing the company's competitiveness by helping expand its SME portfolio with a focus on reaching regional clients outside of the capital and its resilience by helping ensure prudent leasing practises and adequate portfolio quality. With its wide regional outreach across Romania, Garanti Leasing Romania is well positioned to provide finance to MSMEs and attract new MSME clients.
MOTORACTIVE IFN SA
Established in 1998, Garanti Leasing Romania (also known as Motoractive IFN SA) is a mid-sized, MSME-focused finance lease provider based in Romania with total assets of EUR 170 million as of end 2020.
EBRD Finance Summary
Total Project Cost
The EBRD's participation in the proposed transaction is expected to be highly additional in light of the recovery of the Romanian economy from Covid-19 pandemic. The EBRD's proposed loan will help offer financing to diversify the client's funding base, enhance knowledge, innovation and capacity building, and enable expansion.
Environmental and Social Summary
Categorised FI (ESP 2019): Garanti Leasing Romania is an existing client of the Bank. Reporting by the client has confirmed that the company has in place the necessary environmental and social (E&S) policies, procedures and risk assessment tools in line with the Bank's E&S requirements. Garanti Leasing Romania will be required to continue to comply with Performance Requirements 2, 4 and 9 and implement sub-projects in accordance with the EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans; and submit to the EBRD an Annual Environmental and Social Report.
Technical Cooperation and Grant Financing
Company Contact Information
021 387 87 00
PSD last updated
29 Sep 2021
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