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European Bank to take equity stake in Romanian financial institution
The European Bank for Reconstruction and Development has announced a 30% equity investment in Capital S.A., Romania's first western-styled investment bank, for a total value of US$ 2 million (ECU 1.7 million). The other founding shareholders are the Romanian Bank for Foreign Trade, the Romanian Development Bank, Wasserstein Perella, an international investment bank and Asset Management, a venture capital organisation. Capital S.A. has also received technical assistance from USAID.
Capital S.A. is a corporate finance advisory company which will assist Romanian and foreign companies. It is associated with the Romanian Capital Fund, an investment fund, to which the European Bank has made a capital commitment of US$ 7.5 million (ECU 6.4 million). The Fund is dedicated to investments in private sector Romanian and joint venture companies, as well as Romanian companies in the process of privatisation. The Fund is open to both Romanian and foreign investors.
Ron Freeman, First Vice President for Merchant Banking, said "By investing in Capital S.A. and by committing money to the Romanian Fund the Bank is both aiding the nascent financial sector and carrying out its primary aim of galvanising the Romanian private sector by increasing the sources of funds for new enterprises. At the same time it is showing real commitment to Romania and opening the way for investment."
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