Project description
and objectives:
|
The Romanian Development Bank (BRD) was recently privatised with the acquisition by Société Générale (SG) of 51% of the shares in the BRD. The proposed equity investment consists of the purchase by the EBRD of 5% of the shares in the BRD.
The principal objective of the EBRD’s investment in BRD is to strengthen the long-term relationship with BRD and support its development. The credit line will be used to continue to support BRD’s lending to small and medium-sized enterprises in Romania.
|
Transition impact:
|
The investment project supports the first privatisation in the Romanian banking sector: the EBRD’s continuous support to SG-BRD has high demonstration effects for the international investment community. The on-lending of the credit line by BRD will assist the growth and expansion of creditworthy Romanian SMEs.
|
The client:
|
Established in 1990 as a state owned bank, BRD is the second-largest commercial bank in Romania. BRD has 185 branches across the country, and over EUR 1 billion in assets. BRD is now part of the Société Générale group.
|
EBRD finance:
|
The EBRD will make an equity investment of US$ 20.8 million in BRD. In addition, BRD has benefited from sovereign- guaranteed loans from the EBRD since 1994, which will be replaced by a private sector credit line of US$ 45.2 million.
|
Total project cost:
|
The privatisation of 51% of BRD amounted to a capital investment of US$ 200 million by SG. The total project costs financed by the private sector credit line, including capital contributions from sub-borrowers, is estimated at USD 70 million.
|
Environmental impact:
|
BRD will continue to carry out its operations in accordance with EBRD's environmental procedures for Local Banks. In implementing these procedures, BRD requires its borrowers to comply, at a minimum, with national /local health, safety, environmental and public consultation requirements.
|
Technical
cooperation:
|
None
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
|
EBRD contact:
|
Marie-Alexandra Veilleux, Operation Leader: veilleum@ebrd.com
|
Business opportunities:
|
For business opportunities or procurement, contact the client company.
|
General enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
