Project description
and objectives:
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The proposed project is a credit line for up to €20 million in two tranches to
BP to be on-lent by BP to private individuals in Romania as mortgage loans.
The proceeds of the credit line will be used by BP to continue providing
long-term financing to individuals for buying/constructing and/or repairing
real estate properties (houses, flats, etc.). The sub-loans would be
denominated in various currencies depending on customers' demand.
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Transition impact:
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Transition impact potential derives from the demonstration effect associated
with supporting the growth of mortgage lending which is relatively new and
currently rapidly growing in Romania. Development of a mortgage portfolio may
also contribute to the development of financial markets by providing a source
for possible long-term tradable securities (mortgage backed bonds,
securitisation) in the future. Finally, further supporting the growth of BP
and the diversification of its funding base will strengthen the banking sector
by providing much needed long-term financing for individuals and thus
increasing competition.
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The client:
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BP is one of the largest Romanian banks, with a 4 to 5% market share of total
banking assets at end-2003. Total assets represented € 861.3 million, total
equity € 115.9 million and net profit € 9.8 million (IAS) as of end-June 2004.
BP is currently owned by Eurobank EFG (Greece) - 58.6% and GE Capital - 8.75%.
At the same time, BP's employees and 5 Romanian private investment funds
(SIFs) hold in total 33.6% of ownership.
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EBRD finance:
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A multi-currency loan for up to €20 million extended by the Bank to BP.
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Total project cost:
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€20 million.
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Environmental impact:
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The environmental risks associated with the operation and the potential
portfolio are low. BP is already implementing EBRD's environmental policy for
local banks and EBRD’s environmental policy for mortgage loans. BP will need
to ensure that property survey to be conducted for each loan as part of its
due diligence. The survey should include consideration of potential site
contamination, use/presence of hazardous materials in construction, risk of
flooding, or seismic activity and compliance with the applicable national
environmental, health and safety standards and regulations.
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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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Ms. Maria Sultanoiu, Advisor to the President
Banc Post SA
Bucharest, Romania
Phone: +40 21 336 11 25
Fax: +40 21 336 11 25
E-mail: Maria.Sultanoiu@bancpost.com
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EBRD contact:
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Alexandru Tanase, Operation Leader: tanasea@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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