Garanti Lease RO2 (IFC-39287)

Countries
  • Romania
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 26, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Motoractive IFN SA
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 5.87 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 5.87 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 1, 2018

Disclosed by Bank Mar 1, 2017


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Project Description

According to IFC website, Motoractive IFN S.A. is the eighth largest leasing company in Romania with an estimated market share of 4.6 percent as at December 2016. The proposed project is a senior loan of up to EUR5.5 million to Garanti Leasing, for on-lending to women-controlled small and medium enterprises (SMEs). The proposed investment is consistent with IFC’s strategy in Romania and would help a good existing IFC client to expand its SME reach with focus on women owned businesses, moreover, it would strengthen the relationship with Garanti group.

The main objectives of the project are to (i) help respond to the critical term funding gap for SMEs as Garanti Leasing's customer base is predominantly SME's; (ii) alleviate the difficulty of SMEs in accessing bank financing by using asset-secured lease finance; and, (iii) generate employment through resultant growth of SMEs and investment in productive assets, with a focus on women owned SMEs.

Investment Description
  • International Finance Corporation (IFC)

Garanti Leasing is 100% owned by Turkyie Garanti Bankasi A.S., the second largest bank in Turkey, through two holding companies based in the Kingdom of the Netherlands: G Netherlands B.V., with (99.99997%) shareholding and Garanti Holding B.V. (0.00003%). In turn, Turkyie Garanti Bankasi A.S. is controlled by two entities: Banco Vizcaya Argentina (BBVA), the second largest bank in Kingdom of Spain with global operations, which has a share of 39.9% and Dogus Holding, a Turkish holding group, with a 10.0% stake.

Private Actors

Motoractive IFN S.A. is the eighth largest leasing company in Romania with an estimated market share of 4.6 percent as at December 2016. It was established as Motoractive IFN S.A. in 1998 and in 2006 was acquired by GE Money. Turkiye Garanti Bankasi became the largest indirect shareholder of the Company in 2010, and rebranded it to Garanti Leasing Romania in 2011. Garanti Leasing employs 72 fulltime staff in Romania and has eight offices in the country.

Contact Information

Project Contact: Carmen Giosanu
Customer Service and Billing Department Manager, Garanti Leasing
Telephone No.: +40 (21) 387 87 00
Email Address: Carmen.Giosanu@garanti.ro
Office Address: 5 Fabrica de Glucoza Street - Novo Parc 3, Building F - 020331 Bucharest
Website: http://www.garanti.ro/

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/