I.C.S. Raiffeisen Leasing S.R.L.

This summary covers a shareholder loan by Raiffeisen Bank S.A. of Romania to I.C.S. Raiffeisen Leasing S.R.L in Moldova (RLMD). The investor has applied for a MIGA guarantee of €4.75 million (about $6.8 million equivalent) for a period of up to five years against the risks of war and civil disturbance, transfer restriction, and expropriation.

Raiffeisen Bank S.A.’s shareholder loan of €5.0 million is aimed at enhancing the capacity of I.C.S. Raiffeisen Leasing S.R.L. to provide operating leases for motor vehicles, machinery, and equipment in the Moldovan market. Over fifty percent of the total number of lessees supported by this investment is expected to be small and medium-size enterprises (SMEs). MIGA has provided earlier support for RLMD’s start up and expansion.

Environmental Categorization

The project is a category FI under MIGA’s Policy on Social and Environmental Sustainability.

Development Impact

This project is expected to contribute to further development of the financial sector in Moldova by improving access to finance, particularly to segments of the economy that are currently underserved. The World Bank Group’s Country Partnership Strategy for Moldova emphasizes the need to enhance competitiveness of the country's enterprise sector, encourage more investment activity, and promote the expansion of the SME sector.

The proposed project is also aligned with MIGA’s strategy of promoting investments into countries eligible for concessional lending from the International Development Association and South-South investments.

The proposed project would be underwritten through MIGA’s Small Investment Program.