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The establishment of AFIN, the first non-banking financial institution with Romanian capital dedicated exclusively to social enterprises, has entered the stage of setting up de social capital

The consortium made up from the ”Alaturi de Voi” Romania Foundation, FEBEA – The European Federation of Ethical and Alternative Banks and Patria Credit IFN has started providing technical assistance and support for the establishment of AFIN IFN S.A. So far 58 legal entities - social enterprises, NGOs with economic activity, SMEs, companies in education, training, human resources, IT, communication - and other people in the sector are participating in the establishment of share capital. Approximately 100 shareholders are expected to get involved until the institution is officially established in April 2022.

The first non-banking financial institution (IFN) with Romanian capital, dedicated exclusively to the social economy sector, has entered a new stage. The consortium responsible for the establishment of AFIN IFN SA, made up by the “Alaturi de Voi” Romania Foundation, FEBEA - European Federation of Ethical and Alternative Banks and Patria Credit IFN, has launched the registrations for the shareholding of the new lending institution.

AFIN IFN SA will respond to an urgent need on the market: to ensure access to finance for economic operators with social impact in Romania in need of resources to develop. AFIN will offer alternative financial solutions to social economy organizations, through flexible and accessible loan instruments (working capital loans, investment loans, bridge loans for co-financing European funds, etc.).

"If the pandemic has shown us something, it is that we need resilient, inclusive and sustainable societies to meet challenges of the future. Initiatives such as AFIN are a requirement in Romania, in order to invest in projects generating growth, innovation and solidarity. In an uncertain world, where the old rules no longer apply, investing in the future is the best recipe for success", says Daniel Sorrosal, Secretary General of FEBEA - European Federation of Ethical and Alternative Banks.

AFIN IFN SA aims to come up with a new approach to financing policy, adapted to the specificities of the social economy. The institution will be able to carry out the loan analysis taking into account both the economic and the financial viability of the project and the social impact indicators specific to the operators in this sector.

"Social enterprises, NGOs with economic activities, small cooperatives are most often excluded from financing. It is necessary for a financial institution to understand the specificities of these organizations and to develop financial products adapted to them ", underlined Ancuța Vameșu, social economy expert & President of RISE - Romanian Network of Work Integration Social Enterprises and founding member of AFIN IFN SA.

The calendar for AFIN establishment

Getting involved in the establishment of AFIN IFN SA is currently taking place by sending a letter of commitment. The minimum ticket to become a shareholder within AFIN IFN SA is 1,500 lei. The stage of submitting the share capital will end in March 2022.

AFIN IFN SA will be officially established in April 2022, with a minimum starting share capital of 200,000 Euros. Subsequently, the increase of AFIN's capital will be correlated with the increase of the loan portfolio, in correlation with market performances.

The opening of credit applications will take place in May 2022, at the European Conference in Social Economy in Iasi. The first credits will be available from July 2022. It is estimated that at least 25 credits will be awarded in the first year of operation, reaching 170 credits in the fifth year.

"We are convinced that AFIN IFN SA will be a successful financial instrument, which through the innovative operational model will be able to contribute to the adequate financing of social economy operators", underlined Bogdan Merfea, founding member of AFIN IFN SA.

The first 58 shareholders

The launch of the registrations for the participation in the establishment of AFIN IFN SA took place within an online event, supported by the initiators of the project. Immediately after the opening of the procedure, 58 letters of commitment were sent by investors wishing to become founding shareholders of AFIN IFN SA. The value of the amounts committed is over 120,000 euros. Most of those who want to become founding shareholders of AFIN are social entrepreneurs, members of NGOs or individuals in the field of social economy in Romania.

"We are glad to see such a high interest in this new financing institution dedicated to social entrepreneurs. It is a signal that the market is in great need of financing tools for social or environmental projects, and we believe that AFIN IFN SA will be an extremely important pillar for the development of the social economy sector in Romania ", says Angela Achiței, social entrepreneur, president of ADV Romania and founding member of AFIN IFN SA.

People interested in finding out more about how AFIN IFN SA they can become shareholders and the necessary conditions and documents, can directly access afin.org.ro.

CONTACT

email: comunicare@afin.org.ro

wesite: www.afin.org.ro

phone: 0232 275 568