According to IFC website, the project consists of a senior loan of up to EUR55 million or its equivalent in Romanian Leu (RON) to an existing IFC client, Garanti Bank S.A., Romania (“Garanti Bank” or “the Bank”). The purpose of the loan is on-lending to small and medium enterprises in Romania, out of which, half must be allocated to funding eligible sustainable energy finance projects (“the Project”). 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 mitigating climate change impact.

Expected high development impact will be derived from climate mitigation effect, since supporting expansion in the sustainable energy finance area will lead into a decrease in carbon dioxide (CO2) emissions. Additionally, the project is expected to lead into improved competitiveness in this segment, as IFC will be supporting the Bank to promote climate-smart products for the first time. Further impact is related to increasing access to finance for SMEs, an underserved segment of the market.

Garanti Bank S.A. provides retail and SME banking products and services. The company’s retail banking products and services include current accounts, saving accounts and deposits, loans, debit cards, overdrafts, senior packages, payments, and SEQR; and invoice payment, student pass package, piccolo package, direct debit, Western Union, interest rates, bancassurance, and tariff and commission services for retail customers.