ProCredit Bank Romania - A/B Loan

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ProCredit Bank Romania (PCBR) is a specialist microfinance bank established in 2002 with the support of EBRD to provide financial services to micro and small enterprises (MSEs) in Romania. PCBR disbursed almost 90,000 loans to Romanian MSEs for amount of over EUR 520 million. The proposed project comprises a senior syndicated A/B loan up to €60 million including an EBRD A loan of up to EUR 15 million, while the B Loan will be financed by commercial lenders. The new financing will further assist PCBR in accessing international loan markets thus contributing to diversification of the commercial funding base and providing even greater access to MSEs. The project is expected to have a significant impact on the transition process. PCBR will continue to provide support to MSEs that would otherwise have limited access to formal sector finance which includes agricultural MSEs and those MSEs in rural areas. PCBR also supports the development of the financial sector by operating as a best practice institution committed to the principles of complete transparency and strong corporate governance. ProCredit Bank Romania was established in April 2002 and is part of the international ProCredit Holding group, a network dedicated to developing microfinance banks globally. As of December 2007, PCBR operated through 37 branches. Further branch network expansion is planned. From its establishment. EBRD will provide an A loan of up to EUR15 million. Total project cost will be up to EUR 60 million, of which up to EUR 15 million will be EBRD’s share. ProCredit Bank Romania carries out its operations in accordance with the EBRD's “Environmental Procedures for Small and Micro Loans”. In implementing these procedures, it will require its borrowers to comply, at a minimum, with national/local health, safety, environmental, and public consultation requirements. The technical assistance (TA) for establishment of PCBR and for the acceleration of the regional expansion nationwide was provided by the US/EBRD SME Finance Facility, KfW and the by the Luxembourg government over the 2001 – 2005 period for a total amount of EUR 3.4 million. Full graduation from the EBRD’s technical contracts took place in January 2006. No further technical assistance funds are provided. Gian Marco Felice General Manager ProCredit Bank Romania Tel: + 40 21 201 6000 Fax: + 40 21 201 6002 Email: gm.felice@procreditbank.ro