The EBRD is considering a senior loan for up to EUR 20 million in two tranches to MB to be on-lent by MB to SMEs and larger companies in Moldova. The proceeds of the credit line will be used by MB to provide medium and long-term financing to private companies for production, investment, trade, services and working capital needs.
Transition impact potential derives from the demonstration effect associated with supporting the growth of SME and larger corporates lending which is still underdeveloped in Moldova. Development of a market for medium and long-term lending will further build up on the successful implementation of the other credit lines granted by the EBRD to MB in the past. Supporting the growth of MB will strengthen the banking sector and thus increasing competition.
The client:
CB “MOBIASBANCĂ - Groupe Société Générale” S.A. (MB), part of the SocGen Group, a private commercial bank organised and functioning under the law of the Republic of Moldova. As of end-July 2008, MB’s total assets amounted to EUR 207.1 million and total equity amounted to EUR 39.6 million. The audited 2007 net profit was at EUR 5.6 million. As of end-July 2008, its client base was comprised of more than 85,100 clients.
EBRD finance:
A senior loan for up to EUR 20 million extended by the Bank to MB.
Total project cost:
Up to EUR 20 million equivalent. |
