Financed ProjectsExpress Leasing - Micro & SME Financing

Identification Code:

OP/18/0014

Total Operation Cost:

3.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

Provision of the Loan for Micro and SME financing purposes of USD 3 million, secured, to Express Leasing, Moldova. The proceeds of the Facility shall be used by the Borrower exclusively for the purpose of financing Sub-Loans to beneficiaries which satisfy Loan Eligibility Criteria. The Loan aims to contribute towards expanding of the MSME lending program of one of the leading non-banking micro-finance companies in Moldova and thus facilitate the access to finance for small and medium sized private businesses and individual entrepreneurs.

Countries of Operation:

Moldova (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

ICS Express Leasing SRL, a limited liability company incorporated in the Republic of Moldova, was established in 1995 to provide financial lease of motor vehicles and equipment to individuals and legal entities. Over the past years it moved away from the leasing business and has become one of the top microfinance companies. It provides mostly micro loans to individual entrepreneurs and business companies for the purchase of vehicles, as well as consumer loans and SME loans.

Co-Financiers/Participants:

N/A

Guarantors/Sponsors:

N/A

Developmental and Regional Cooperation Impact:

The operation involves a USD 3 million loan and is expected to have modest but favorable economic benefits for the Moldovan economy, the most relevant being additional tax revenue gains from increased economic activity under the additional amount provide. In addition, the additional amount provided 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 SMEs benefiting from financing from the operation engage in export activities, there will be regional cooperation benefits.

Environmental Classification and Impact (summary):

The assessment concludes that the Borrower does not have a formalized E&S management system; however it assigned the function of E&S basic screening to a risk officer that checks the loan applications against the Exclusion List, which is similar to the BSTDB’s Exclusion List. This approach is found to be commensurable with the level of E&S risks associated with its micro-financing.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org