Unicredit Leasing Romania S.A (UCL ). formerly named Demir Romlease S.A. (Romlease or the Company), is a fast-growing joint stock leasing company established in 1994 and based in Bucharest, Romania. IFC was one of the founding shareholders of the company, the first leasing company in Romania, and has been a mainstay of the company through some lean years, as described in more detail below. The investment would support the further growth of UCL's leasing book on a sound financial basis. Now that the company is on a stable footing, with strong shareholders, and tight credit screening and monitoring policies in place, it is proposed that through this credit line, IFC remains an active supporter of the company. The leasing market has been growing relatively fast in Romania. The total market is currently estimated at about $1 billion. The company targets middle size and large companies. With EU accession projected to occur in the next three or four years, the demand for medium term financing (of which leasing is an attractive alternative, especially for smaller companies) is expected to grow, as Romanian companies improve their environmental and quality standards, in order to be more competitive, in a larger EU market. IFC’s focus has been to build and strengthen financial intermediaries in Eastern Europe. The leasing sector in Romania is developing and IFC believes that there is a significant opportunity to accelerate its growth. By granting this loan, IFC will help expand a reputable leasing company in Romania and strengthen the leasing industry.