Financing is granted in RON, a first in IFC’s history, in superior conditions than ones obtained by a bank from the international financial markets. “We get better benchmarks for our clients, because the rating of a loan institution is limited by the country rating, according to the head of the IFC Office in Romania, Ana Maria Mihaescu, for Business Standard.
The corporation is to grant another RON denominated loan, but declined to say which financial institution this will be granted to. However, Mihaescu said the funds will be further lent to small and medium-sized enterprises (SME), one of the most attractive niches on the local banking market.
In June last year, IFC’s portfolio for Romania exceeded €500 million, of which investments on the financial markets made up 78 percent, joint projects with Distrigaz Sud amounted to 13 percent, projects with Petrotel Lukoil represented 11 percent, and one percent was made up of general production investments.
IFC is one of the largest international lenders for private companies in emerging countries. Since its establishment in 1956, IFC has invested more than $56 billion in the private sector of emerging economies. A further $25 million has been used for syndicated loans to 3,531 companies.
