Project Description
A senior unsecured loan of up to EUR 5 million to be provided to Victoriabank (“VB”), an existing EBRD client in Moldova, for on-lending to eligible micro, small and medium-sized enterprises (“MSMEs”) under the SME Competitiveness Programme in the Eastern Partnership of the EU. The loan will consist of two equal tranches, with the second tranche uncommitted and available at the sole discretion of the EBRD.
Project Objectives
The project will enable VB to support the investments of local MSMEs in upgrading their technology and equipment necessary to meet EU standards (product quality, health and safety measures and environmental preservation). At least 70% of the financed sub-loans are expected to comply with EBRD Green Economy Transition (“GET”) approach.
Transition Impact
ETI score: 75
The project contributes to the objectives and structure of the EaP SMEC Programme under the Financial Intermediaries Framework (FIF), supporting the following transition qualities: Competitive: The project will contribute to VB’s financing of MSMEs for implementation of their capital investments with more than 12 months’ investment cycle. Each financed sub-project is expected to result in MSMEs’ improvement in and compliance with at least one of the related EU directives. This is expected to increase the MSMEs’ competitiveness and potentially support export activity, demonstrating the benefits of compliance with the EU level standards. Resilient: The project aims to ensure adequate underwriting and portfolio quality of MSME loans to ensure sustainable lending.
Client Information
VICTORIABANK SA
Victoriabank (“VB”) is the 4th largest commercial bank in Moldova with a market share of 14% by total assets at YE2022. VB is majority owned by VB Investment Holding B.V., the Netherlands, which owns 72.19% of the shares of VB. VB Investment Holding B.V. is owned 61.82% (44.6% of VB) by Banca Transilvania (“BT”), Romania and 38.18% (27.6% of VB) by EBRD.
EBRD Finance Summary
EUR 5,000,000.00
Total Project Cost
EUR 5,000,000.00
Additionality
Key sources of additionality under the project are (1) Financing structure (long-term tenor on terms not readily available on the market) and (2) Knowledge, innovation and capacity building (VB and its clients will benefit from the EaP SMEC capacity building programme (led by the Programme consultants) supporting investment project preparation and implementation).
The project will also be Gender Additional as part of the sub-loans financed out of the proceeds of EBRD loan are expected to be on-lent to women-led MSMEs.
Environmental and Social Summary
Categorised FI (ESP 2019). Victoriabank is an existing client of EBRD and performance on environmental and social (E&S) issues to date has been satisfactory. Annual reporting, and previous E&S due diligence, demonstrates that the Company have a written Environmental Management Policy, have staff nominated to manage E&S issues, have adequate E&S risk management procedures built into the credit appraisal process and appropriate monitoring for E&S issues both within the portfolio and within the institution itself. The Company will be required to continue to comply with PRs 2, 4 & 9 and submit annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
The proposed EaP SMEC sub-operation is complemented by grant funding (TC and Non-TC) sourced from the EU through the Delegation Agreement between EBRD and the European Commission on the SME Competitiveness Programme in Eastern Partnership. Eligible sub-borrowers will receive technical assistance funded by the EU and grant support in the form of investment incentives.
Company Contact Information
Vasile Donica
[email protected]
+37368822228
PSD last updated
02 Jun 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: [email protected]
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: [email protected]
General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to [email protected]. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email [email protected] to get guidance and more information on IPAM and how to submit a request.
