|
EBRD and Western NIS Enterprise Fund become shareholders in Moldova-Agroindbank
Conversion of debt to equity is signal of confidence in Moldova’s largest bank
The European Bank for Reconstruction and Development (EBRD) plans to convert part of an existing US$ 8 million senior convertible loan to Moldova-Agroindbank (MAIB) into a 10 per cent equity stake. The Bank extended the loan to MAIB, Moldova’s largest bank, in December 1998 and has worked with MAIB to support local small and medium-sized enterprises (SMEs) since 1995. The conversion, expected to take place early next year, will reduce the loan to about US$ 6.2 million. At the same time US$ 1.8 million will be invested by the U.S.-based Western NIS Enterprise Fund.
"This conversion is an indication of our confidence in MAIB as an important financial institution in Moldova," said Kurt Geiger, EBRD Business Group Director for Financial Institutions. "We have developed a productive relationship with MAIB, and look forward to taking this further in the future."
At the same time, Mrs. Natalia Vrabie, President of MAIB, said: "Our very good working relations with the EBRD have been consolidated over the last five years. Once more, the EBRD has proved its high transitional impact not only on the Moldovan economy and banking sector, but on MAIB itself as well."
"Our good cooperation with both the EBRD and MAIB over the last few years will be further enhanced by this investment in MAIB," added Alex Munteanu, Country Manager & Investment Officer at Western NIS Enterprise Fund in Chisinau, Moldova. "Western NIS Enterprise Fund is very active in Moldova and the current investment will further contribute to the development of the Moldovan SME sector."
Established in 1991, MAIB was initially designed to process the banking needs of the agricultural and agro-processing sectors, but has gradually evolved into a universal commercial bank. Its client base includes large Moldovan companies, as well as an increasingly important segment of the Moldovan private-sector SMEs.
|
