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Total Leasing & Finance 2

Moldova | Financial Institutions

Identification Code:: OP/15/0020
Total Operation Cost:: 4.500.000 EUR
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

4.500.000 EUR – 18 Sep 2015
: BSTDB Signed Amount – Signed Date

4.500.000 EUR – 20 Nov 2015
: Status:
Completed
Description and Purpose of the Operation:: Medium term SME facility of EUR 4.5 million for Leasing, SME and Micro Financing. The Loan aims to contribute towards expanding of the SME lending program of one of the leading and MSME companies in the leasing and SME market in Moldova and thus facilitate access for, micro, small and medium sized private businesses and entrepreneurs to longer term finance. The proceeds of the SME facility shall be used by the Borrower exclusively for financing new and refinancing existing transactions of SME Leasing, SME and Micro financing. Specifically and based on the use of proceeds term of the Loan Agreement the facility will be used for the purpose of : 1) Providing SME Lease Financing up to EUR 2.7 million to SME Leasing beneficiaries (lessees) as per the BSTDB's eligibility criteria. 2) Providing SME and Micro financing direct loans of EUR 1.8 million to SME and Micro beneficiaries (sub-loans) as per BSTDB's eligibility criteria.
Countries of Operation:: Moldova (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: I.C.S. Total Leasing and Finance SA
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
Developmental and Regional Cooperation Impact:: The operation is a Leasing, SME and Micro financing loan for on-lending to micro small and medium sized enterprises (MSMEs) that is expected to have modest but favorable economic benefits for the Moldovan economy. The most relevant of these benefits is the additional tax revenue gains from increased economic activity resulting from the financing provided. In addition, the financing will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly expected to be modest. Other BSTDB countries are important trade partners for Moldova so to the extent that SMEs benefit from financing from the operation and engage in export activities, there will be regional cooperation benefits. The operation is fully consistent with the sectorial and operational priorities outlined in the Country Strategy for Moldova 2015-2018.
Environmental Classification and Impact:: The Borrower is an existing intermediary of the Bank. The gained experience in terms of environmental and social (E&S) management of leasing activities has been positive. Total Leasing has developed and incorporated into its portfolio management a sound E&S management system, which is compliant with BSTDB's requirements and existing good practices, namely with FMO, DEG and EBRD guidelines. Under the previous operation no high risk leasing operations were financed, including those stipulated in the E&S Exclusion List. The annual reporting was accurate and provided in a timely manner. For the purpose of this operation the same E&S terms and conditions will apply as in the case of the existing (initial) leasing facility.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org