Project description
and objectives:
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The original project was the acquisition by the Bank of an equity stake of 10%
plus one share in Banca Romaneasca (“BROM”) alongside National Bank of Greece
(“NBG”), the strategic investor.
The proposed project is for the subscription of newly issued shares of BROM as
part of a capital increase to take place in December 2005, to allow the EBRD
to retain its 10% stake. Such capital increase will strengthen BROM’s capital
base allowing further growth of the bank’s business and compliance with
National Bank of Romania (“NBR”) regulations.
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Transition impact:
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The transition impact of the partnership with NBG in the acquisition of BROM
come from:
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Institution building through the transfer of EBRD’s experience in transforming
banks together with strategic investors into modern, efficient and well
governed banks;
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Enhancement of competition in the SME and retail segments of the banking
market by facilitating BROM’s access to long-term financing; and
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Assistance with the development of the SME strategy and business plan as an
important element for improving BROM’s market position.
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The client:
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BROM is a medium size Romanian bank, with a 1.5% share of total banking assets
as at end of June 2005. Total assets represented €507 million, total equity
€58 million and net profit €2.1 million (IFRS) as at end of June 2005. BROM is
owned by NBG – 87.1%, EBRD – 10.0%, and approximately 170 Romanian private
shareholders – 2.9%.
NBG (Moody’s: A2; S&P: BBB+) is the largest Greek bank with total assets of
€48 billion and equity of €2.7 billion as at year-end 2004.
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EBRD finance:
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Subscription of newly issued shares of BROM for an aggregate amount of up €7
million as part of a capital increase to take place in December 2005.
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Total project cost:
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To be confirmed following the closing of the transaction.
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Environmental impact:
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BROM will be required to adopt and implement EBRD’s “Environmental Procedures
for Intermediated Lending through Local Banks” across all of its operations.
BROM will also be required to adhere to the Bank’s Environmental Exclusion
List and clients of BROM should comply, at a minimum, with national
requirements for environmental health and safety. On an annual basis BROM will
provide the Bank with an annual environmental report on environment, health
and safety issues associated with its operations and portfolio.
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Technical
cooperation:
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None.
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 Romaneasca S.A.
35, Unirii Blvd, sector 3
030822
Bucharest,
Romania
Phone: (40)-21-305-93-00
Fax: (40)-21-305-95-81
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EBRD contact:
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Leonie See, Operation Leader: seel@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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