MOBIASBANCA SME CREDIT LINE

Location:

Moldova

Project number:

35088

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

20 Jul 2004

Status:

Complete

PSD disclosed:

15 Jun 2004

Project Description

The proposed project comprises a $2 million credit line to Mobiasbanca (MB). The proceeds of the credit line will be used to provide medium-term loans to private Moldovan small and medium sized enterprises (SMEs) mainly for financing investment purposes and working capital.

Transition Impact

The credit line to MB is an important continuation of the EBRD's financial involvement in the Moldovan banking sector, which has been significantly strengthened and improved through equity investments, implementations of micro-lending programs, SME credit lines, and Trade Facilitation Programs to various banks. Currently the main transition challenges will be increasing the financial intermediation (which is still very low) and improving access to long-term finance for private sector businesses.
Thus, the main transition impact of the project consists of supporting the development of a leading middle bank in Moldova fully dedicated to SME sector and enhancing its ability to meet the increased demand for medium-term funding from domestic private SMEs.

The Client

MB, founded in 1990 as a private financial institution is at present a universal financial institution with particular focus on SME clients. It is the sixth largest bank  in Moldova with 5.9% of the banking assets, 6% of all loans and 4.5% of the total deposits in the banking system. Its clientele is over 28,250 clients and its network includes a head office, 9 branches and 9 representative offices in Chisinau, Ungheni and Anenii Noi.
The largest shareholder of MB is Development Capital Corporation Moldova (DCCM) holding 63.68% of MB’s capital. It is wholly owned by New Century Holding (NCH) Fund, USA. NCH is working under an agreement with OPIC and is subject to rigorous overseeing by OPIC.
MB's growth has been supported by the EBRD since 1999 through micro-lending credit line of $1 million repaid in full by 2001 and Trade Facilitation Programme finance of up to $4.5 million.

EBRD Finance

Secured senior loan of $2 million extended for a period of 5 years.

Project Cost

$2 million.

Environmental Impact

MB will be required to comply with EBRD's Environmental Procedures for Intermediated Finance through Local Banks as revised in 2003, including compliance with applicable national environmental, health and safety requirements, adherence to the Environmental Exclusion and Referral List and submission of annual environmental reports to the Bank.

Technical Cooperation

No TC funds are envisaged in support of this project.

Company Contact

Mobiasbanca S.A.
81-A Stefan cel Mare
Chisinau, MD-2012
Republic of Moldova
Phone: (37322) 541974
e-mail address: info@mobiasbank.com
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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