International Investment Bank (IIB) has granted a loan to Trans-Oil, a large Moldovan agro-industrial group, aimed at the acquisition of Tandarei oilseed crushing plant and vegetable oil production plant in Romania, the multi-national lender said on April 10.
The funds will be used for development and technical modernisation of the plant that has a strong export potential, as well as for financing its operating needs, including acquisition of raw materials, IIB said in a press release.
“IIB funds combined with a considerable experience of Trans-Oil Group are intended to bring the plant back to full-scale operational cycle, providing a positive impact on the economic situation in the region and giving a new impetus to further active growth of the Romanian economy,” the bank said.
“The implementation of this project is fully consistent with the IIB mission as an international development institution, since it contributes to attraction of foreign investment in one of the member states, provides support to the strategically important Romanian agricultural sector, stimulates growth of national export potential and, due to creation of new jobs, has a high social effect.”
IIB was founded in 1970 to foster economic cooperation between the COMECOM countries. Today it is a multinational development bank that includes Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia, and Vietnam amongst its members.
Romania is one of the most active IIB member states; it has the fifth largest share in the Bank’s paid-in capital (7.92%), and the volume of Romanian projects in the loan and investment portfolio is steadily growing and now stands at 11%, approaching €100mn. The Bank has already provided investment support to various important projects for the Romanian economy in such key sectors as infrastructure, industry, agriculture, retail and logistics.
"There are currently four more deals totaling about €40mn in the IIB pipeline, which include investments in the modernisation of production infrastructure and support of the SME sector in Romania," IIB said.
IIB Bank has undergone major modernisation since late 2012 and is rated A- (outlook stable) by S&P, A3 (outlook stable) by Moody’s, BBB+ (outlook stable) by Fitch and A (outlook positive) by Dagong.