39108 - BCR Leasing

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

39108

Company Name

SC BCR LEASING IFN S.A.

Date SPI Disclosed

May 10, 2017

Country

Romania

Region

Europe

Projected Board Date

Jun 26, 2017

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Sep 6, 2017
Signed : Mar 27, 2019
Invested : Apr 12, 2019

Sector

Leasing Services

Project Description

BCR Leasing ("BCR Leasing" or "The Company") is a wholly-owned subsidiary of Banca Comerciala Romana ("BCR", part of Erste Group) established in 2001. The Company provides domestic financial leasing services for the purchase of capital goods, such as: leasing for the purchase of vehicles, fleets, equipment and industrial machinery, agricultural machinery or medical equipment. Through its specialized subsidiary, BCR Fleet Management, the Company also offers customized operational leasing and fleet management services for cars and light commercial vehicles.

The project consists of a RON 200 million (approximately USD 50 million) loan package to BCR Leasing. The package is to support provision by BCR Leasing ("BCRL") of finance leasing to its core Small and Medium Enterprise ("SMEs") clientele, primarily of vehicles and moveable equipment.

Associated Advisory Engagement

N.A.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	51.65
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The main objectives of the project are to (i) help utilize a proven financial product that would respond to the critical term funding gap for SMEs in Romania; (ii) alleviate the difficulty of SMEs in accessing bank financing by using asset-secured lease finance; and, (iii) introduce competition in the financial sector and promote growth and generate employment. Specifically, the facility is aimed to (i) Address the critical shortage of term funding for SMEs in Romania; (ii) Help deepen financial markets, boosting RON-denominated leasing and mitigating foreign exchange risks; and, (iii) Generate employment through resultant growth of SMEs and investment in productive assets.

- Long-term funding: IFC, by providing a long-term loan (five years), will support BCRL in meeting the long-term funding needs of its clients. - Local currency funding: IFC would provide financing in local currency. Local currency leases bear no foreign currency risk and therefore are a lower risk financing solution for SMEs, most of which have income exclusively in local currency. - Long-term partnership: the proposed project would build on IFC's existing strong relationship with BCR and Erste group by helping to finance a key operational subsidiary in one of Erste's key markets. - Standard setting: given IFC's expertise in environmental and social ("E&S") standards, IFC is well placed to support BCRL in developing its E&S policies and procedures.

E&S Category Rationale / Risks and Mitigation

The Project consists of an up to $50 million 5-years senior loan to BCR Leasing ("BCRL"). The project aims to support provision by BCRL of finance leasing to its core SME clients, primarily of vehicles and moveable equipment. The Company's portfolio includes leases with mainly potentially limited adverse E&S risks and impacts that are generally site-specific, largely reversible and readily addressed through mitigation measures. The Project has therefore been categorized as Fl-2 in accordance with the IFC's Sustainability Framework. The client will be required to comply with the IFC Exclusion List and Romanian E&S laws and regulations.

The main E&S risks and impacts of the project derive from BCRL's environmental risk management status. At present, BCRL does have some elements of an Environmental and Social Management System (ESMS) for undertaking E&S risk management of its leasing activities. E&S issues are taken into consideration in the investment cycle and includes the requiring compliance with applicable national laws on environment, health, safety and social issues. No staff/department has been assigned responsibility for E&S due diligence and monitoring. BCRL was found to be in partial compliance with IFC Performance Standard 2 requirements. BCRL has committed to develop and implement its ESMS commensurate with their leasing activities to achieve compliance with the IFC's requirements; appoint an E&S officer to oversee the ESMS implementation, including providing ongoing training to its staff; enhance HR practices to be consistent with the all requirements of IFC Performance Standard 2 on Labor and Working conditions.

Contacts

For Inquiries About the Project, Contact

BCR Leasing IFN S.A. (BCR Leasing)
loana Margareta Vasiliu
Business Line Controlling Senior Analyst
+40 (21) 323 73 10
loanaMargareta.Vasiliu@bcr-leasing.ro
8 Piata Alba lulia, bl. I 7, Sector 3, 031105, Bucharest
https://www.bcr-leasing.ro/

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Nominate officers	07/07/2017
Establish SEMS	07/07/2017
Formalize procedures	07/07/2017
Staff Training	09/05/2017
Enhance HR practice	09/05/2017
Implementation report	12/04/2017

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer