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Banca Transilvania wins international support
€60 million loan by international institutions to finance development
Banca Transilvania has won far-reaching international support for its
ambitious development plans. The German development finance institution DEG -
Deutsche Investitions- und Entwicklungsgesellschaft mbH, European Fund for
Southeast Europe (EFSE), International Finance Corporation (IFC), the private
sector arm of the World Bank Group, Netherlands Development Finance Company
(FMO) and the European Bank for Reconstruction and Development (EBRD) are
providing Romania’s fifth largest bank with a €60 million subordinated loan.
The total financing is to be granted in five equal and parallel portions of
€12 million each.
The package is part of a larger financing programme to help sustain Banca
Transilvania’s substantial growth and ambitious development plans. The bank is
particularly strong in the small and medium-sized enterprises and retail
sectors. The international loan follows a recent capital increase which raised
€35 million primarily from the bank’s local small shareholders. The EBRD which
with a 15 per cent-stake is the bank’s largest single shareholder also
participated in this capital increase.
Hildegard Gacek, EBRD Director for Romania, said the loan will mark a further
step in Banca Transilvania’s development as a key bank in Romania and its
recognition by the international banking market. Supporting the bank with its
extensive branch network will help to make a substantial contribution to the
development of financial services in the country. Customers stand to benefit
from the ensuing increase in competition.
Arthur Arnold, CEO FMO: "We are very proud to be part of this transaction.
Banca Transilvania is a truly entrepreneurial and dynamic bank. FMO is
convinced that the financial sector is the engine for economic growth. This
project will further strengthen the partnership between all involved
organisations."
Dr. Klaus Glaubitt, Chairman of the Board of EFSE, underlined the strong
position of Banca Transilvania. “This transaction is an important step in the
consolidation of our cooperation and underlines the common strategic goal of
developing the Romanian markets for housing and small and micro enterprises
(SMEs). By strengthening the Bank’s Tier 2 capital, the subordinated loan
provides a vital support for the Bank’s planned growth of its loan portfolio”.
Reinhard Bollmann, Vice President Portfolio Management within DEG, said: “We
are proud to support with Banca Transilvania a bank distinguished by
exceptional regional knowledge and a proven track record. As one of the bank’s
focus activities is on financing of small and medium-sized enterprises, the
project renders a contribution to securing jobs in this field. We support the
development of such growth-intensive commercial banks for the sake of
financial-sector diversification and improvement of access to financial
services.”
Shahbaz Mavaddat, IFC’s Director for Southern Europe and Central Asia, said,
“Banca Transilvania is an innovative local bank that is expanding into the
small and medium enterprise and mortgage finance sectors, which are strategic
priorities for IFC in Romania.”
Robert C. Rekkers, Banca Transilvania’s CEO, used the opportunity to thank the
bank’s partners EBRD, IFC, DEG, FMO and EFSE for showing once again their
strong support to Banca Transilvania’s development strategy. Banca
Transilvania is proud of being able to put together five of the most important
IFIs, which committed themselves, along with the bank’s shareholders, to
strengthen the capital base of one of the most dynamic banks in Romania.
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