Project description
and objectives:
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Equity investment in Banca Transilvania (“BT”) through subscription of newly
issued shares as part of the capital increases that will take place in
2007-2009. Such investment will allow the Bank to retain its 14.98% stake in
BT.
BT’s capital increases will further support the bank’s growth in the Romanian
banking sector. The strategy of BT will remain to consolidate its market
position by developing new products and continuing to expand its branch
network, as well as consolidating their financial group. BT is particularly
strong in the SME and retail sectors.
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Transition impact:
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EBRD’s original equity investment in BT has been instrumental in supporting
the development and strengthening of a locally-owned bank, as well as
promoting improvements in its corporate governance. Such objectives have so
far been achieved with EBRD’s role in BT being particularly important in
promoting higher corporate governance standards, in strengthening the bank’s
management and in supporting the ambitious strategy that is currently being
implemented.
The proposed participation in BT’s capital increase reinforces the objectives
of the original equity investment by providing the necessary means for the
bank to continue expanding its operations while strengthening its ability to
face increasing competition. The ultimate goal is for BT to further develop
into a more modern and efficient institution, which will contribute to the
competitiveness of Romania’s banking sector and to the increase in
availability of funding to local companies.
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The client:
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BT is a medium-size commercial bank registered and operating under Romanian
law. As of end-2006, it had 4.6% market share of total banking assets, total
balance sheet of EUR 2.5 billion, equity of EUR 233 million and a net profit
of EUR 32.1 million.
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EBRD finance:
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to be confirmed
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Total project cost:
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to be confirmed
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Environmental impact:
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BT will continue to comply with EBRD's Environmental Procedures for
Intermediated Financing through Local Banks, including adherence to the
Environmental Exclusion and Referral List, compliance with the applicable
national environmental, health and safety and public consultation
requirements, and submission of annual environmental reports to the EBRD.
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Technical
cooperation:
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None for this transaction. BT benefited from Technical Cooperation under the
EU/EBRD SME Facility to finance the consultancy services of Shorebank Advisory
Services from January 2000 to April 2003.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Banca Transilvania
Cluj-Napoca, G Baritiu Street, no. 8
Phone: (40)-264-407150
Fax: (40)-264-407179
E-mail: bancatransilvania@bancatransilvania.ro
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EBRD contact:
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Andreea Moraru, Operation Leader: morarua@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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