Project description
and objectives:
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Senior syndicated loan of up to € 22.5 million with an A/B structure, B loan
to be syndicated. The A/B loan has a maturity of 5-7 years and is among the
first syndicated loan arranged in Romania for a private bank.
The main objective of the project is to complement the growth of the retail
deposit base to achieve diversification of the funding base and provide
support for the expected growth of BT’s lending operations (mainly SMEs,
corporate and retail).
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Transition impact:
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The transition impact of this project stems from the following:
(i) The syndication will allow Banca Transilvania to extend medium and long
term finance to Romanian SMEs, corporate and retail individuals that are
located throughout the country.
(ii) This syndication will provide one of the important players in the local
market with a new source of finance through access to international funding
sources from western commercial banks.
(iii) A successful syndication will have a strong demonstration effect in the
Romanian banking sector, as well further familiarising Western banks with
funding opportunities in Romania.
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The client:
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Banca Transilvania (BT) is a commercial bank operating through more than 100
branches all over the country with the headquarters in Transilvania (Cluj). BT
is a medium-size bank, with a 2.6% share of total banking assets, total assets
of € 454.8 million, total equity of € 55.4 million and net profit of € 5.1
million (IAS format, unaudited) as of end-June 2004.
After the last share capital increase in August 2004, total equity amounts to
€ 67.5 million. EBRD is the largest shareholder of BT holding 15% of shares
and voting rights, other shareholders include SIF Banat-Crisana (4.99%), SIF
Oltenia (4.99%), Mr. Horia Ciorcila (4.99%) and other shareholders with less
than 5% shareholding (in total 70.03%)
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EBRD finance:
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Senior syndicated debt in the aggregate amount of up to € 22.5 million under
an A/B loan structure consisting of the following:
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A Loan of € 7.5 million;
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B Loan of € 15 million to be syndicated.
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Total project cost:
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€22.5 million.
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Environmental impact:
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The environmental risk associated with the operation and the potential
portfolio is low. BT is managing environment-related reputation and financial
risks through the implementation of EBRD Environmental Procedures for local
banks, adopted as a condition of EBRD’s equity investment in 2001. Project
monitoring has shown that BT’s performance has been satisfactory and the bank
is required to continue to apply EBRD’s environmental procedures, which were
amended with the new requirements imposed by the 2003 Environmental Policy,
across its operations. In implementing these new procedures, BT will assess
the operations it supports to ensure they comply, at a minimum, with local and
national health, safety, environmental and public consultation requirements.
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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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Mr. Robert Rekkers CEO,
Banca Transilvania SA
Cluj-Napoca,
Romania
Phone: +40 264 40 71 50
Fax: +40 264 40 71 79
E-mail: robert.rekkers@bancatransilvania.ro
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EBRD contact:
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Alina Mircea, Operation Leader: mirceaa@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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