45897 - RALFI IFN SA ROMANIA

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Summary of Investment Information

Project Number

45897

Company Name

RALFI IFN S.A

Date SPI Disclosed

Mar 21, 2022

Country

Romania

Region

Europe

Projected Board Date

Apr 22, 2022

Environmental Category

FI-3 - No Impact

Status

Completed

Last Updated Date

Nov 19, 2023

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : May 26, 2022
Signed : Jun 24, 2022
Invested : Jul 6, 2022

Sector

Finance Companies - Consumer Finance

Project Description

The proposed investment consists of a senior loan of up to EUR10 million (in RON equivalent), to Ralfi IFN S.A Romania (operating as Garanti BBVA Consumer Finance) (Ralfi or the Company), a new client to IFC. The proposed investment will help to scale up the Company’s recently launched green loan portfolio, with 100% of IFC’s proceeds channeled to providing funding to individuals for the purchase of eligible green assets including green housing upgrades, PV panels, electric/hybrid cars, electric bicycles and scooters, domestic appliances (A+++), geothermal heating devices for homes and home isolation materials and technologies. Established in 1997, Ralfi is a key player in Romania’s consumer finance market. It is a subsidiary of Turkey Garanti BBVA (TGB) and is regulated as a non-banking financial institution under the National Bank of Romania.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.57
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	Climate (not covered in any category)

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

Development Impact

The Project is expected to strategically increase access to climate financing specifically by supporting the financing of green consumer loans. Consumer credit solutions can play a key role in supporting the green transition in Romania and with this project, IFC will help consumers to contribute to climate goals through their consumption choices, particularly by helping to fund green asset purchases

The proposed investment in a 3-year unsecured loan to Ralfi supports IFC’s additionality on two layers: (i) Financial additionality: Providing longer-term funding to a consumer finance non-banking financial institution in Romania; (ii) Non-financial additionality: IFC will leverage its global knowledge and best practices to support Ralfi to streamline and grow its green portfolio.

E&S Category Rationale / Risks and Mitigation

The proposed project is a senior loan to Ralfi focusing on consumer finance operation in Romania. IFC's investment proceeds will be fully used to support the Company's green loan portfolio i.e., on-lending to qualified individuals for the purchases of eligible climate/green assets and will not be used in manufacturing/production sector. E&S risks of such investment are considered to be low. The project has therefore been classified as FI-3 according to IFC's Sustainability Policy. The Project will not support coal-related activities, or higher risk activities involving a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, or d) significant occupational health and safety risks. Ralfi will be required to be in line with Life and Fire Safety requirements and requirements of IFC's Performance Standard 2 on Labor and Working conditions. IFC will monitor changes in the client's portfolio supported by the Project and may require additional E&S measures if there is any change in E&S risk.

Contacts

For Inquiries About the Project, Contact

Ralfi IFN S.A
Tolga Banyocu
General Manager
021 232 17 77
tolga.banyocu@garantibbvaconsumer.ro
Sos Glucose Factory no. 5, Novo Park 3 shopping complex, Building F, et. 4, sector 2, Bucharest
www.garantibbvacreditedeconsum.ro

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