IFC, a member of the World Bank Group, has provided a loan of around $38.5 million to UniCredit Leasing Corporation to help finance SMEs in Romania.
The agreement will allow UniCredit Leasing, the market leader in Romania’s leasing sector, to extend its reach to smaller companies that need to upgrade their fixed-term assets.
UniCredit Leasing is a subsidiary of UniCredit Bank, a long-term IFC client.
The loan is also part of IFC’s strategy to work with banks and financial institutions across the region to strengthen their lending capacity to underserved sectors.
Mircea Cotiga, CEO of UniCredit Leasing, said: “UniCredit Leasing Corporation has an ongoing strategy of supporting smaller companies in Romania.
“With this new loan, we enforce our long-term commitment to encouraging this segment. In the months to come, we will focus on healthy sustainable growth in the local market and further diversifying our SME portfolio.”
Leasing is an attractive alternative for Romanian SMEs, especially for small and young companies unable to obtain bank loans because of their lack of credit history.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.
Working with more than 2,000 businesses worldwide, it uses capital, expertise and influence to create markets and opportunities in the toughest areas of the world.
During 2017, it has delivered $19.3 billion in long-term financing for developing countries.