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).
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.
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%)
Senior syndicated debt in the aggregate amount of up to € 22.5 million under an A/B loan structure consisting of the following:
A Loan of € 7.5 million;
B Loan of € 15 million to be syndicated.
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.
Mr. Robert Rekkers CEO,
Banca Transilvania SA
Phone: +40 264 40 71 50
Fax: +40 264 40 71 79
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