Patria Credit was established in 1998 under the name of Capa Finance and was acquired in 2007 by Romanian American Enterprise Fund (RAEF) ; Capa Finance was rebranded to Patria Credit in 2009. Immediately after the acquisition, RAEF invited another private equity fund Balkan Accession Fund (“BAF”) to participate in the MFI’s capital increase. Currently, the MFI’s main shareholders are: RAEF with a 56.5% stake, EECAP UA (BAF) with a 43.2% stake, and Chindris Adrian Petru with 0.3%.

Romanian-American Enterprise Fund (RAEF) is a private equity fund established in 1994 by the U.S. government to support the development of the private sector in Romania through direct equity investments and loans. Since its inception in 1994, RAEF has invested more than US$80 million and attracted another US$140 million from partners such as IFC, EBRD, DEG, FMO and the Black Sea Trade and Development Bank (“BSTDB”).

Balkan Accession Fund is a EUR 110 million private equity fund created in 2005 by lead investors such as RAEF, EBRD, DEG, FMO and BSTDB. It was designed to take advantage of investment opportunities related to the 2007 EU accession of Romania and Bulgaria but also to selectively invest in other countries in the Western Balkans and Ukraine. BAF''s portfolio includes market leaders in: retail, logistics, refrigeration, microfinance, leasing, consumer finance, equipment rental, ice-cream production and IT&C operated in Romania, Bulgaria, Moldova, Albania and Turkey.

Axxess Capital is an investment manager of two private equity funds RAEF and BAF with more than 15 years extensive investment experience in the region and US$250 million equity invested. Axxess Capital is fully engaged in maximizing the value of the investment by improving the performance of the investee company over the holding period. Patria Credit has been a portfolio client of Axxess Capital since 2007, when the Company was acquired by RAEF and BAF. Since then, Axxess Capital team has been sitting on the Board of Directors of Patria Credit.

The proposed project involves a senior loan from IFC’s own account to the Company in Lei, in an amount not to exceed US$11 million (equivalent).

11.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	11.0
Equity

* These investment figures are indicative

Patria Credit is headquartered in Bucharest, Romania. It is currently present in 27 rural and 15 urban locations and runs a network of 42 branches, thus having a nation-wide coverage.

- The development impact of IFC''s financing is expected to be high, as it will enhance the MFI''s ability to support productive MSEs which will in turn stimulate growth, employment generation and poverty reduction.
- Create a demonstration effect for MFIs in the country by bringing best practices in insurance and social and environment management systems to Romania''s largest MFI.
- Improve asset quality of the portfolio through IFC''s global knowledge of microfinance and rural products.

- IFC''s financing is of particular importance to the MFI, especially in a time when long-term local currency financing has become scarce.
- IFC would facilitate the access of the leading Romanian MFI to commercial funding, ultimately enhancing the level of credit being made available to the local MSE market, which was significantly hit by the crisis and is experiencing credit restrictions due to the effects of the financial crisis.
- IFC would support the MFI''s growth plan, in particular in rural areas, by transferring knowledge from IFC''s global experience in microfinance and rural products.
- IFC will help strengthen Patria''s operational procedures in insurance and social and environmental management systems.
- IFC''s long term investment in a Romanian MFI can provide a positive signal to international and local investors strengthening the sector

This project, which consists of a senior loan to Patria Credit for on lending to micro and small entrepreneurs in Romania, has been classified as a Category FI-3 project according to IFC''s Environmental and Social Review Procedure.