Maib signed a EUR 15 million subordinated loan agreement with EFSE
Maib announces that today it has signed subordinated loan agreement with with European Fund for Southeastern Europe (EFSE) for the amount of EUR 15 million.
The loan meets the definition of Tier 2 capital thus enabling maib to optimize capital structure and maintain a strong capital cushion. The loan will be denominated into MDL and will be used to support financing micro, small and medium-sized enterprises (MSMEs) and help them increase competitiveness and resilience, while safeguarding them from potential exchange rate fluctuations.
Maib has recognized expertise in corporate and small business lending in Moldova, robust risk management and internal control mechanisms that would enable it to effectively deploy the funds and realize the loan objectives profitably and in a socially responsible way.
Giorgi Shagidze, maib CEO, said:
“Financing agreement with EFSE is a substantial positive development for maib. The loan is the first subordinated loan in such a format for a banking institution in Moldova, and I am very grateful to EFSE for the partnership and trust in maib. The loan will be used to SME financing to further support our customers in the sector and enhance leadership position in the segment or market as a whole while optimizing our capital structure”.
Klaus Müller, EFSE Board Chairperson, said:
“Today, maib stands out in the Moldovan banking sector as the most advanced in terms of governance and institutional transformation thanks to the efforts of its committed shareholders and dedicated management team. We are especially pleased to partner with maib that is well equipped to deliver tailored services to MSMEs and be a truly strategic partner for EFSE in channelling sustainable finance to jointly build the country’s business and economic resilience.”
Vitalie Lungu, Vice Chairman of the Management Board maib, Chief Financial Officer, said:
”We are pleased to have signed this agreement, thanks to the close cooperation between maib and EFSE teams. This subordinated loan will give the bank additional capital support for the growth that the bank has experienced in the SME segment in order to take the business to the next level, offering great benefits to our customers, to strengthen and develop the country’s economy.”
About maib
Maib is the largest bank in Moldova, with a 34% share of loans and 31% share of deposits of the entire banking system. The bank serves nearly 30% of the country's population and is one of the largest employers in the country. Maib’s medium term targets include 40% market share in loans, 55% share in payments, under 45% cost-to-income ratio and 20%+ return on equity to be achieved by 2024. Since 2018, the bank's largest shareholder is a consortium, which includes European Bank for Reconstruction and Development (EBRD), Invalda INVL, a leading asset management group in the Baltics, and Horizon Capital, a private investment fund focused on emerging markets in Europe.
About EFSE
An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of micro and small enterprises as well as improved living conditions for private households. As access to financial services is key to developing this segment, EFSE focuses on helping local financial sectors strengthen their ability to provide responsible financing for this target group. Alongside its investment activities through local partners, EFSE multiplies its impact through the EFSE Development Facility, which provides technical assistance, training, and other nonfinancial support to entrepreneurs and institutions.
EFSE was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.
Finance in Motion GmbH, Germany, serves as EFSE’s advisor and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager.
For more information on the European Fund for Southeast Europe, please visit: www.efse.lu.
For more information on Finance in Motion, please visit: www.finance-in-motion.com.
