MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) May Loan $38m to Raiffeisen Leasing Romania for Micro-, Small, Medium-sized Enterprises (MSMEs)

The European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London, is considering disbursing a senior, local-currency loan in an amount equivalent to EUR 30 million (USD 38 million) to Raiffeisen Leasing Romania, a subsidiary of Austria-based Raiffeisen Zentralbank Österreich AG (RZB). If approved by EBRD, the loan would be used for financing leases of equipment by micro-, small and medium-sized enterprises (MSMEs); corporates; individuals and public entities in Romania.

The transaction would constitute EBRD’s first bilateral loan to a leasing company that is denominated in Romanian Leu (RON). It is anticipated that the transaction would contribute to “the sustainable development of the growing RON leasing market”[1].

In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries. As of 2013, RZB reported assets of EUR 147 billion (USD 202 billion).

By Alíz Crowley, Research Associate

About the European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries.

About Raiffeisen Bank International (RBI)

Raiffeisen Bank International (RBI) is an Austria-based collection of banks, leasing companies and other financial service providers operating in 15 countries in Central and Eastern Europe. RBI is a fully consolidated subsidiary of Austria’s Raiffeisen Zentralbank Österreich AG (RZB). As of 2013, RBI reported total assets of EUR 131 billion (USD 180 billion). As of 2013, RZB reported assets of EUR 147 billion (USD 202 billion).

Sources and Additional Resources

[1] EBRD, Raiffeisen Leasing Romania

MicroCapital, April 25, 2014, Raiffeisen Bank Arranges $60m Loan to Microfinance Institution Access Bank of Azerbaijan

MicroCapital, June 19, 2013, European Bank for Reconstruction and Development (EBRD) Loans $106m to Banca Comerciala Romania (BCR) for Small and Medium-Sized Enterprises (SMEs)

MicroCapital, June 4, 2013, European Bank for Reconstruction and Development (EBRD) May Back $50m Foundations Fund 1.0 for Small, Medium-Sized Enterprises in Romania

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)

MicroCapital Universe Profile: Raiffeisen Bank International (RBI)

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