DCM UCB Ro II (IFC-49480)

Countries
  • Romania
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 20, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
UNICREDIT BANK SA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 108.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 17, 2025

Disclosed by Bank Nov 22, 2024

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Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed project is to invest up to EUR100 million (corresponding to US$108 million), in EUR and/or RON equivalent, for IFC’s own account, in one or more senior unsecured bonds to be issued by UniCredit Bank Romania (UCB or the Bank), as part of its new Medium-Term Notes Program (MTN Program). The bonds are expected to be issued in the local capital markets, with the first investment targeted for June/July 2024. The bonds will have a maturity of up to 7 years and will not qualify as minimum required eligible liabilities (MREL) but will be bail-in-able. All proceeds from IFC’s investment will be used to support the Bank’s climate finance program through loans to eligible small and medium enterprises (SMEs) and green mortgages in Romania.           

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The use of IFC’s proceeds under the Project is targeted to climate financing to SMEs projects such as energy efficiency, waste and wastewater management, water efficiency, and green mortgages. The activities supported under the project are mostly expected to have medium E&S risks and include a limited number of business activities that have potential adverse environmental or social risks or impacts that are few in number, generally site specific, largely reversible, and readily addressed through mitigation measures. Therefore, this Project has been categorized as FI-2 in accordance with IFC's Sustainability Policy.

The applicable E&S requirements will include the IFC Exclusion List and Romanian E&S laws and regulations. The following activities are not eligible for financing under this project: IFC Exclusion List activities, coal related activities, Renewable Energy projects, solar projects, and higher risk business activities that may include (i) involuntary resettlement; (ii) risk of adverse impacts on Indigenous Peoples; (iii) significant risks to or impacts on the environment, community health and safety, biodiversity, or cultural heritage; (iv) risk of significant retrenchment; and/or (v) significant occupational health and safety risks. In addition, the Bank will need to be in line with life and fire safety requirements and the requirements of IFC’s PS2 on Labor and Working conditions. Given that this investment is a capital market transaction, where IFC is not a sole investor IFC’s requirement on disclosure of climate-related sub-projects will not be triggered.

Key risks from activities supported by this investment may derive from the Bank's capacity to correctly implement the environmental and social management system to manage the E&S risks associated with the portfolio supported through the Project proceeds which typically include occupational health and safety issues, labor and working conditions and waste and wastewater management.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Under the proposed project, IFC would invest on its own account up to US$100 million equivalent in Romanian Leu or Euro denominated (non-MREL-eligible) bonds to be issued by UCB. IFC’s investment in each issuance, will depend on market interest and allocation through a book-building process.

IFC's Investment as Approved by the Board: Loan 108.50 million (USD)

 

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

UniCredit Bank Romania - UCB is 98.6 percent owned by UniCredit SPA Italy (UCI, the Sponsor). UCI is publicly listed on the Italian Stock Exchange, and its 19 bank subsidiaries are market leaders in their respective countries across Europe. UCI's consolidated total assets stood at EUR785 billion as of December 2023, and it is rated BBB by S&P, BBB by Fitch, and Baa3 by Moody's.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

UniCredit Bank S.A.
Cosmina Roteanu
Head of ALM and Funding
+40 21 200 2020
infocenter@unicredit.ro
Bd. Expozitiei Nr.1F, Sect 1, Bucuresti, Cod Postal 012101, Romania
https://www.unicredit.ro/en

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

How it works

How it works