The transaction was significantly over-subscribed, being initially launched for RON 120 million and finally closing at RON 150 million.
Citigroup Corporate and Investment Banking, the corporate banking division of Citigroup Romania S.A., was sole arranger of the facility. The other lenders participating in the syndicated term loan facility are Alpha Bank , Bancpost, BCR, Eximbank, UniCredit and Volksbank.
“The oversubscribed transaction marks ProCredit Bank’s successful entry into the local syndicated loan market and contributes to the diversification of its refinancing resources,” says Michael Kowalski, General Manager ProCredit Bank Romania.
“The micro and small businesses are critical for economic development in Romania and have proven to be dynamic and reliable partners for the Bank. Our wish is to support them, to facilitate the access to financial services of those customers who are usually ignored by other commercial banks”, states Michael Kowalski.
“Citigroup is proud to have led this syndication, which is also one of the largest granted to a micro-finance institution within our region. This transaction demonstrates both Citigroup’s capability in providing access to finance to new and diverse institutions and, in particular, its commitment to supporting microfinance initiative”, says Shahmir Khaliq, Citigroup Country Officer.
“We believe that this transaction will set an example and help in developing a more dynamic and flexible local syndicated loan market. Moreover, this deal broadens the range of financings that will be available to microfinance institutions in future”, adds Bob Annibale, Global Director of the Citigroup Microfinance Group.
