BCR, a member of the Erste Group, is a universal bank dedicated to both retail and corporate customers. It is the leading banking organization in Romania, managing assets worth of more than EUR 17.1 billion. The bank is offering a full range of banking services having 650 retail branches and agencies (for individuals and micro corporations) located in most of the Romanian cities with a population of more than 10,000 inhabitants.

The proposed IFC investment is an A Loan for IFC’s own account in the amount of up to EUR50 million.

70.51 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	70.51
Equity

* These investment figures are indicative

The Bank is headquartered in Bucharest, Romania, with 650 branches and agencies across Romania. Investments can be made throughout Romania.

In the current international difficult financial context, this senior loan facility would provide the Bank with term funding to enhance access to finance for agribusiness enabling this underserved sector to undertake strategic capital investments thereby contributing to economic stability and job creation.

Banks and companies are experiencing difficulty even in sourcing shorter tenor funds, which is severely curtailing economic viability. IFC is able to fill a financing void due to the tightening of credit markets in emerging countries, including Romania. Unavailability of long-term funding has traditionally been one of the critical issues limiting access to finance for farmers and smaller-scale agricultural companies. Under the proposed project, IFC will be able to provide funding with longer maturities and better amortization patterns not readily available in the market.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

IFC is analyzing the activities proposed to be supported with IFC financing to determine the applicable performance requirements. These will include a combination of the IFC FI Exclusion List, the applicable national social and environmental laws and regulations and, if applicable, the IFC Performance Standards. IFC is also appraising the bank''s labor practices and its risk management systems and capacity to perform the necessary social and environmental due diligence and supervision against the applicable performance requirements. As an existing IFC client, the bank has procedures in place for managing social and environmental risks. Based on the review, the Bank will be required to:

- Upgrade its existing social and environmental procedures and, if necessary, formalize them into a Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities are in compliance with the applicable performance requirements;
- Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and
- Continue to submit a periodic report to IFC as per a format to be provided by IFC.