The Bank’s main sponsor is the Agricultural Bank of Greece (ATE) that holds an 87.21% stake of the Bank. The founding shareholder of Mindbank S.A., re-named ATE Bank Romania S.A., was the Central Union of Handicraft Cooperatives (UCECOM) that still holds an 8.76% ownership. The remaining balance is owned by other individuals and legal entities.

ATE is a leading bank in Greece which was originally established in 1929 as a non-profit organization set up to provide credit to the agricultural sector. ATE is 77% state owned, with the remaining 23% of ATE listed on the Athens Stock exchange. ATE ranks amongst the 150 top European banks. Starting in August 2006 and by subsequent acquisitions ATE secured 87% of the former Mindbank S.A. as of the end of September 2007 and changed the Bank’s name to ATE Bank Romania S.A.

The proposed project consists of up to EUR10 million senior loan with a seven-year tenor including a two-year grace period on principal repayments.

14.73 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	14.73
Equity

* These investment figures are indicative

The Bank is headquartered in Bucharest, Romania and currently has a network of 15 branches located in Bucharest and other main cities of Romania.

IFC’s investment is expected to have a significant developmental impact with positive impacts for the MSME sector, including the underserved agribusiness sector, and the economy in general, in addition to improving the living standards of Romanian citizens by indirectly improving also savings and investment rates. This project will:

- provide long term funding to fast growing Romanian MSMEs that have become a significant engine of economic growth;
- catalyze the Bank’s entry to the agribusiness sector financing;
- facilitate better asset-liability balance and enable the Bank to expand financial intermediation capacity.

IFC has a critical additionality in providing long-term debt needed for the lengthening of maturities offered to MSMEs. This investment will enable IFC to access the large and steadily expanding Romanian MSME sector that has established an impressive track record in boosting the country’s economy and is generating considerable demand for term funding to finance capital expenditure and capacity expansion programs.

This renewed support to an IFC client is expected to increase the visibility of the Bank on the local market and allow it to grow further.

IFC analyzed the Bank''s portfolio, and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determined the following Applicable Performance Requirements will apply:

- The IFC FI Exclusion List, and
- The applicable National Social and Environmental Laws and regulations.

While ATE Bank Romania is an existing IFC client, as this project will follow IFC''s revised Environmental and Social Review Procedure, IFC is in the process of reviewing the Bank capacity and existing Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.

Based on the review, the Bank will be required to:

- Upgrade, if necessary, its existing SEMS, prior to disbursement to the satisfaction of IFC,
- Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements,
- Continue to submit a periodic report to IFC as per a format to be provided by IFC.