Banca Transilvania subordinated bond



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

26 Apr 2018



PSD disclosed:

06 Jul 2018

Translated version of this PSD: Romanian

Project Description

The EBRD invested EUR 100 million in a subordinated bond issued by Banca Transilvania as part of a total aggregate issuance of EUR 285 million. This is the first subordinated bond listed on the local market and is compliant with the European Union's Capital Requirements Regulation and Capital Requirements Directive IV (commonly referred to as CRR/CRD IV or Basel III).

Project Objectives

With this investment, EBRD is seeking to support the optimisation of Banca Transilvania's capital structure by increasing the weight of Tier 2 instruments and MREL-eligible funding base, in line with the regulatory requirements to be defined at European and local level.

Transition Impact

The investment increases competitiveness in the banking sector by supporting balance sheet restructuring and capital adequacy for a systemic financial institution. It also contributes to good governance and capital market development through the introduction of a new product in Romania in line with new regulatory frameworks (BRRD, MREL).

Client Information


Banca Transilvania SA is a commercial bank incorporated in Romania providing universal banking services. As of March 2018, Banca Transilvania has a 14% market share in terms of total assets (second largest bank in Romania). It is rated BB+ (stable) by Fitch and the EBRD is the largest shareholder with a current stake of 8.6%.

EBRD Finance Summary

EUR 100,000,000.00

Total Project Cost

EUR 285,000,000.00

Environmental and Social Summary

Categorised FI (ESP 2014). Banca Transilvania (BT) is an existing equity client and is in compliance with the EBRD's Performance Requirements (PRs) 2, 4 & 9 under existing exposures. The bank is not engaged in any Category A project financing and screens all transactions against the EBRD's Environmental and Social Exclusion List. BT is satisfactorily managing environmental and social risks within the bank's existing portfolio by applying the EBRD's Environmental and Social Risk Management Procedures across its portfolio and has submitted satisfactory Annual Environmental and Social Reports (AESRs) to the Bank. For this transaction BT will be required to continue to comply with PRs 2, 4 & 9, adhere to the EBRD's E&S requirements and submit AESRs to the Bank.

Technical Cooperation


Company Contact Information

Mihaela Nadasan
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