Victoriabank, a subsidiary of Romania’s Banca Transilvania Financial Group and the third-largest bank in Moldova, announced in a press release on April 11 that it has signed an agreement to acquire Microinvest, the largest non-bank microfinance institution in the Republic of Moldova. 

Banca Transilvania announced plans to take over Microinvest in early 2020, but the pandemic put its plans on ice for five years. The acquisition is part of Banca Transilvania Group’s strategy to strengthen its presence in neighbouring Moldova and to export its Romanian microfinance expertise across borders, reinforcing its role as a key financial player in the region.

Microcredit’s assets were MDL5.4bn (over €270mn ) and MDL4.75bn portfolio of loans as of the end of 2023, when the non-bank financial institution’s net profit was MDL340mn.

Microinvest is majority controlled (57.61%) by Dutch-registered Balkan Financial Sector Equity Fund (BFSE Holding BV), with significant shareholders Fundatia Soros Moldova (Moldova, 25.65%) and Oikocredit Ecumenical Development Cooperative Society (The Netherlands, 13.45%).

The signing of the takeover agreement took place in Chișinău, marking a strategic step in BT Group’s regional expansion and its second major operation in Moldova. Victoriabank, controlled by a consortium formed by Banca Transilvania and the EBRD, has recently completed the takeover of BCR Chișinău, a subsidiary of Banca Comerciala Romana (BCR).

The new acquisition will allow Victoriabank, currently the third-largest bank in Moldova, to significantly diversify its portfolio and client base by integrating Microinvest’s strong position in the microfinance sector. 

Microinvest serves approximately 40,000 clients, including both individuals and small businesses, across 17 branches and employs 350 staff. Its services span SME financing, agricultural loans and personal lending.

“Microfinancing is a special niche of the Banca Transilvania Financial Group, developed by BT Mic, BT Direct and Banca Transilvania. We want to replicate in the Republic of Moldova the success we have in Romania both in supporting clients through microfinancing and in the field of procurement,” said Bogdan Pleșuvesc, deputy general manager of Banca Transilvania.

The transaction remains subject to approval by regulatory and supervisory authorities in Romania and Moldova. Until clearance is granted, Microinvest will continue to operate independently.

Legal and financial due diligence for the transaction was supported by Romanian and Moldovan advisers including Filip & Company, Vernon | David and Associates and PwC.