Moldova-based lender Moldindconbank is offering the sale of 63.89% of its share capital to a strategic investor.
“Moldindconbank” – one of the biggest banks in the Republic of Moldova - has recently announced the offering of around 64% of its shares to a strategic investor, priced by Deloitte & Touché at MDL239.5 per share or MDL760.1 million (around $44 million USD) for the whole package. Moldindconbank’s shares are a high-return and high-profit investment due to the bank’s high profitability and capitalisation, its position in the market and Moldova’s sustainable economic growth. Today, in terms of infrastructure and service offerings, Moldindconbank is one of the most developed and technological banks in Moldova, holding a reputation of being a transparent and reliable business partner.
Moldindconbank’s team of dedicated professionals, have developed the bank since its inception in 1991 to reach some of the top ranking positions in Moldova’s banking sector. Moldindconbank now provides its retail and corporate clients with a wide range of innovative products and services. This has been recognised by various international awards, namely: The Most Innovative Bank in Moldova 2016 (Global Banking and Finance Review), P2P Transfer - The Best Banking Product in Moldova 2016 (Global Banking and Finance Review) and The Best Bank in Moldova 2015, 2014, 2006 (Global Finance).
Moldindconbank’s management has consistently strengthened the bank’s position in the country’s banking sector by adapting to internal and external factors, improving the quality of customer service and strengthening the bank’s risk management, therefore, increasing the efficiency of the bank and its capitalisation.
MOLDOVA’S UPWARD TREND
The macroeconomic development of the Republic of Moldova is characterised by its aspirations to align its political and economic systems with those of the EU, and adopt European values. Since the beginning of 2018, there has been growth and positive development in most sectors of Moldova’s economy, including both agricultural and industrial production. These sectors have recorded growth, in part, driven by a surge in internal and external demand. Domestic trade in goods and services is also showing a positive trend due to the continuous increase in consumption. External trade is on the upward trend too. Investments in fixed assets recorded sustained growth, both supported by private and public investments.
Moldova’s GDP is growing at around 4.5% annually, totalling at around MDL81.8 billion (around $5 billion USD) in the first half of 2018. The annual inflation rate is decreasing, amounting to 2.4% in September 2018, which is below the inflation target of around 5% set by the National Bank of Moldova (NBM). Under the Association Agreement between Moldova and the EU, NBM is pursuing reforms aimed at strengthening the country’s banking sector and improving its regulatory and supervisory framework, aligning them with Basel III and the EU regulations. Increased attention is also being paid to shareholder transparency. NBM has made considerable progress in introducing robust corporate governance standards in the banking sector and this has attracted international investors.
In Moldova, there are 11 licensed banks, including four foreign-owned banks and financial groups. Since the beginning of 2018, two new strategic investors have entered the domestic banking sector: Banca Transilvania from Romania has become the major shareholder in VICTORIABANK and Intesa Sanpaolo has become the sole shareholder of EXIMBANK. Recently, on 2 October, 41,09% of shares of MAIB - the biggest bank in the Republic of Moldova, was purchased by HEIM Partners Limited - an international investor association of the EBRD, Horizon Capital and AB Invalda INVL.
ACHIEVEMENTS & STRATEGIC OBJECTIVES
Moldindconbank is the second biggest bank in Moldova by total assets and holds, on average, 19 to 20 per cent of the market. Moldindconbank is the leader in the national payment card market and the leader for money remittances services, accounting for more than a 37% share of each market. Moldindconbank is also the most efficient financial institution with an ROA of 3.45% and ROE of 24.61%.
The bank operates the largest network in Moldova, consisting of 194 offices and more than 720,000 clients, of which 30,000 are companies. To comply with EBA and other international recommendations, the bank has reviewed its Corporate Governance Code to ensure its transparency, stability, efficiency and its leading positions on the market. One of the main objectives of the bank is to further develop its compliance functions in order to comply with the latest legislation and regulations.
Moldindconbank’s strategy is focused on strengthening its position as a leader in innovative service delivery. As well as providing the most popular mobile application on the market, the bank will further develop remote service functions to ensure a synergy between traditional and digital banking. Moldindconbank’s professional team, their understanding of the local market, as well as the bank’s development strategy, will ensure a profitable and sustainable partnership.
