Victoria Bank Capital Increase II

Location:

Moldova

Project number:

6368

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

25 May 1999

Status:

Signed

PSD disclosed:

29 Apr 1999

Project Description

An additional equity investment of up to US$ 250,000 (EUR 236,000) in Victoria Bank to support its capital base consolidation and institutional development, which is anticipated to take place later in 1999.

The operation will enable VB to consolidate its capital base, which is scheduled to take place later in 1999, and will strengthen VB’s balance sheet. The proceeds of the equity will be used by VB to expand its loan portfolio to small and medium-sized enterprises (SMEs) in Moldova, to develop new products in order to become a more competitive financial institution and to support VB's institutional development.

Transition Impact

By supporting the development of VB, the operation will contribute to the promotion of a sound private banking system in Moldova and will facilitate the financing of private SMEs.

The Client

Victoria Bank (VB) started operations in 1989 as one of the first purely private banks in Moldova. Today it is one of the largest private commercial banks in Moldova in terms of both total assets and total equity and is regarded as a well-managed and profitable organisation. VB maintains a good domestic branch network, comprising nine branches throughout the country, located in Chisinau and other major industrial centres.

VB has a total market share of approximately 9 per cent of aggregate banking assets. It has been able to implement a strategy to diversify its lending portfolio and business activities. VB now competes with a broad spectrum of Moldovan banks for lending opportunities and deposits.

EBRD Finance

An additional equity investment of up to US$ 250,000 (EUR 236,000), together with the initial investment, will keep the EBRD’s shareholding in VB at the same level.

Project Cost

The total project cost is US$ 250,000 (EUR 236,000).

Environmental Impact

The bank will adopt and implement environmental procedures satisfactory to the EBRD, and all activities will be required to comply with the Bank's FI Environmental Exclusion List. All borrowers will be required to comply, at a minimum, with health, safety and environmental standards and regulations and public information/participation requirements in Moldova. On an annual basis, VB will report to the EBRD on environmental issues.NoneN

Technical Cooperation

None

 

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Share this page: