EBRD reduces stake in Romania’s Banca Transilvania

By Olga Rosca
@olgarosca


Banca Transilvania is Romania’s third-largest lender by assets

Confident in lender’s strong performance, EBRD remains its largest shareholder

The European Bank for Reconstruction and Development (EBRD) has reduced its equity stake in Banca Transilvania, one of the leading banks in Romania. On 22 November, the Bank sold 104.5 million shares, representing 2.9 per cent of Banca Transilvania’s share capital, through a private placement led by the investment firm Wood & Company.

Following the sale, the EBRD remains Banca Transilvania’s largest shareholder, with an 8.6 per cent stake. The Bank acquired a 15 per cent stake in the Romanian lender in 2001 to strengthen Banca Transilvania’s capital base and support the expansion of its activities and loan portfolio. Since then Banca Transilvania has grown into the third-largest bank by assets in Romania.

Lucyna Stanczak-Wuczynska, EBRD Director for EU Banks, said: “We are very pleased with our longstanding partnership with Banca Transilvania and the company’s outstanding achievements over the past years, notably its strong position as an innovative and fast-growing locally owned bank in Romania. The bank’s robust and adaptable business model, its proven ability to face headwinds with speed, openness and transparency, and its committed and highly experienced management make Banca Transilvania a strong, resilient and experienced lender.”

She added: “As a continuing shareholder, the EBRD remains confident of Banca Transilvania’s future prospects. By reducing our stake we are helping to increase the liquidity of Banca Transilvania shares on the Bucharest Stock Exchange, while we continue to support the bank’s long-term growth strategy.”

The EBRD is a leading institutional investor in Romania, having invested over €7.3 billion to date in 384 projects and mobilised more than €14 billion from other sources of financing. Its operations in Romania are headed by Matteo Patrone.