Project description
and objectives:
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BT registered outstanding results over the last 12 months, exceeding the most
optimistic expectations, and additional capital is required for the bank to
continue the same pace of growth.
The subscription of newly issued shares of Banca Transilvania (BT) is part of
a new capital increase to take place in June 2005. In parallel, BT is also
raising USD 25 million (EUR 19.2 million) in tier II capital. EBRD’s
investment will total approximately € 2.2 million and will allow the Bank to
retain its 15% stake in BT.
Such capital increase will further support BT’s growth in the Romanian banking
sector. The strategy of BT will remain to consolidate its market position by
developing a financial group including not only banking but also leasing,
asset management, brokerage, consumer finance and insurance. 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 was aimed at contributing to the
development and strengthening of a privately owned bank, as well as promoting
improvements in its corporate governance.
EBRD’s role in BT has been 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. BT is
currently the first largest bank in Romania in the hands of local private
investors and is one of the fastest growing banks in the country, increasing
consistently its market share. BT is also one of the most traded companies in
the Bucharest Stock Exchange.
The proposed participation in BT’s capital increase, just like the
participation in the first capital increase completed in 2004, will allow the
EBRD to retain its 15% stake and confirms the confidence in BT and its growth
prospects. It is consistent and reinforces the objectives of the original
equity investment by providing the necessary means for the bank to continue
expanding its operations. 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 2004, it has 2.9% market share of total banking assets, total
balance sheet of EUR 668.6 million, equity of EUR 75.1 million and a net
profit of EUR 15.3 million.
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EBRD finance:
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Subscription of 20,025,000 newly issued shares of BT for ROL 4,000 each, as
part of a capital increase to take place in June 2005.
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Total project cost:
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EUR 14.8 million
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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
e-mail: bancatransilvania@bancatransilvania.ro
Phone: (40)-264-407150
Fax: (40)-264-407179
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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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