Today maib have signed a risk sharing-facility with the European Bank for Reconstruction and Development (EBRD).
The unfunded risk-sharing facility will be used to increase financing to selected businesses in Moldova. Under the agreement EBRD will share maib’s exposure to local enterprises through an unfunded risk participation, by guaranteeing up to 50% of the lender’s existing and new exposure, thereby reducing the risk weighting and capital requirements on the loans, freeing up funds, and thus increasing maib’s capacity to finance. Under the structure EBRD and maib have already approved two loans with total amount of EUR 20m.
Additionally, maib also received a loan for the amount of EUR 5 million under the EU4Business-EBRD credit line for on-lending to local SME aiming to upgrade products and services in line with the EU standards, increase competitiveness locally and realize international trade opportunities, with at least 70 per cent of the loan expected to finance investments in green technologies.
The EU is supplementing the EBRD financing with incentives and free-of-charge technical assistance to borrowers under its EU4Business initiative. The agreement follows maib’s already signed EUR 30 million under the programme over the past 2 years.
Octavian Costas, EBRD Associate Director, Senior Banker, said:
“We are pleased to be joining hands with our long-standing partners, the European Union and maib to support business in Moldova with much-needed finance. Today’s signing will open up more opportunities for a greater number of companies across the country to invest in recovery, long term growth and development”.
Jānis Mažeiks, EU Ambassador to the Republic of Moldova, said:
“Support to SMEs has been and remains at the core of EU assistance to the Republic of Moldova and its people, as they play an essential role in building modern economies, due to their capacity to innovate and adapt to fast changing markets. Today, in partnership with EBRD and under the Team Europe approach, another concrete step has been taken to improve the access of Moldovan SMEs to finance, which is essential for introducing modern technologies and raising competitiveness. We encourage the SMEs from the Republic of Moldova to take advantage of the new opportunities provided to them in the framework of EU4Businees and in partnership with local banks”.
Giorgi Shagidze, CEO of maib said:
“This is a unique product for our customers so that we can meet their increasing requirements in financing, supporting growing businesses and investing in long term development Moldova’s economy. I would like to express my gratitude to the EBRD and the EU for continued partnership with maib and longstanding support for the Moldovan economy. Signing the risk-sharing agreement is a testament to maib's lending expertise and our ability to offer much needed financial products and services to local businesses. We look forward to working with our valued partners to enable Moldovan businesses to thrive and stay competitive”.
This innovative arrangements fully align with maib’s strategy and evolution in the business lending. In particular, SME segment has shown exceptional growth in 2021 with the maib’s SME loan portfolio growing over 30% this year.
EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 38 economies across three continents. The Bank is owned by 69 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, well-governed, green, inclusive and integrated.
Maib is the largest bank in Moldova, accounting for 31.1% of country’s banking assets and 34.2% in loans as of 30 September 2021. The bank provides 25.3%of all mortgage loans extended to Moldovans, serves over 35% of Moldova’s population and is among the largest employers in the country. The bank is well capitalized with Tier 1 Capital ratio of 19.9% as of 30 September 2021. Maib is widely recognized for its customer service and product innovation. Since 2018, maib’s largest shareholder is a consortium of investors composed of European Bank for Reconstruction and Development, Invalda INVL, a leading asset management group in the Baltics, and Horizon Capital, an Emerging Europe focused private equity fund manager.