Project description
and objectives:
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The subscription of newly issued shares of Banca Transilvania (BT) is part of
a new capital increase to take place in June 2006. EBRD’s investment will
total approximately € 5.4 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 aimed at contributing to the
development and strengthening of a privately 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 2005, it has 3.9% market share of total banking assets, total
balance sheet of EUR 1.3 billion, equity of EUR 144.6 million and a net profit
of EUR 27.2 million.
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EBRD finance:
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Subscription of 53,264,925 newly issued shares of BT for RON 0.35 each, as
part of a capital increase to take place in June 2006.
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Total project cost:
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Total capital increase is EUR 35.5 mln.
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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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