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Moldova-Agroindbank S.A. II

Moldova | Financial Institutions

Identification Code:: OP/07/0645
Total Operation Cost:: — USD
Maturity:: 12 months
Operation Status:: BSTDB Approved Amount – Approval Date

8.000.000 USD – 27 Apr 2007
: BSTDB Signed Amount – Signed Date

8.000.000 USD – 18 Jun 2007
: Status:
Completed
Description and Purpose of the Operation:: Provision of a Bank to Bank Multi-purpose Loan to Moldova Agroindbank to strengthen its liquidity and support its business expansion. The project aims to fund the business development of the Borrower and subsequently benefit its corporate, SME and retail clientele through provision of quality financial services.
Countries of Operation:: Moldova (100,00%)
Financial Product:: Loans
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Moldova Agroindbank is a successor to the Moldovan subsidiary of USSR State Agroprombank and commenced operations in May 1991 as a public limited liability commercial bank. It operates through 57 branches and 26 representative offices and 90 ATMs (49 in Chisinau) covering the whole country and employs 1502 staff. With USD 60.7 million equity and USD 366.7 total assets as at year end 2006, it is the largest commercial bank in Moldova holding 20,7 % of all banking sector assets, 23,5% of bank loans and 21,8 % of deposits. The bank offers the full range of banking products and services in domestic and foreign currency to retail and corporate customers. Moldova Agroindbank is 100% privately owned. Up until March 2006, a circa 20% of the shares were held by EBRD and the Western NIS Enterprise Fund which exited the bank in favour of four foreign companies. The bank bears the following awards for 2006: The Best Bank in Moldova, The Best bank in Moldova by Capital Strength, The Best bank in Moldova by Gross profit.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The loan to Moldova Agroindbank demonstrates BSTDB commitment to support Moldova’s banking sector. It will help the bank to complement its already large corporate loan portfolio with working capital and fixed assets financing for SMEs and private clients. The proposed loan will improve the balance sheet structure of the Borrower, diversify its liability base and strengthen its reputation. The loan to Moldova Agroindbank will contribute to the Borrower’s institutional development resulting in further business growth, improved liquidity, funding of client capital expenditures, job creation, income generation, improved company infrastructure and increased trade turnover, including between BSEC countries. Due to the Borrower’s well-established market presence, the loan will represent an excellent mechanism for BSTDB to extend funding to Moldovan enterprises which cannot be otherwise accessed by BSTDB directly.
Environmental Classification and Impact:: The Borrower is required to comply with BSTDB's Negative List of Goods, including the Environmental Exclusion List and the national environmental requirements, as well as make sure that the beneficiaries fully comply with these requirements.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org