Summary of proposed guarantee
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- I.C.S. Raiffeisen Leasing S.R.L.
- Project ID
- Fiscal year
- Guarantee holder
Raiffeisen Bank SA
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- October 02, 2012
- Project Board date
- October 25, 2012
- Gross exposure
- $6.1 million
- Project type
- Strategic priority area
This summary covers a shareholder loan by Raiffeisen Bank S.A. of Romania to I.C.S. Raiffeisen Leasing S.R.L in Moldova (RLMD). The investor has applied for a MIGA guarantee of €4.75 million (approximately $6.1 million) for a period of up to five years against the risks of war and civil disturbance, transfer restriction, and expropriation.
Raiffeisen Bank S.A.'s shareholder loan of €5.0 million is aimed at enhancing the capacity of I.C.S. Raiffeisen Leasing S.R.L. to provide operating leases for motor vehicles, machinery, and equipment in the Moldovan market. MIGA has provided earlier support for RLMD's start up and expansion.
The project is a category FI under MIGA's Policy on Social and Environmental Sustainability.
This project is expected to contribute to further development of the financial sector in Moldova by widening financing sources, particularly to segments of the economy that are currently underserved. Moldova's credit penetration is low compared to other countries in the region.
The World Bank Group's Country Partnership Strategy for Moldova emphasizes the need to enhance competitiveness of the country's enterprise sector, encourage more investment activity, and promote the expansion of the SME sector.
The proposed project is also aligned with MIGA's strategy of promoting investments into countries eligible for concessional lending from the International Development Association and South-South investments.
The proposed project would be underwritten through MIGA's Small Investment Program.