RON 195 mn loan to Alpha Bank Romania under RLF

Location:

Romania

Project number:

53809

Business sector:

Financial institutions

Notice type:

Private

Approval date:

08 Mar 2023

Status:

In Exploratory, Pending Final Review

PSD disclosed:

23 Aug 2022

Project Description

Provision of a five-year senior unsecured loan of RON 195 million to Alpha Bank Romania SA under the Resilience and Livelihoods Framework for on-lending to eligible companies in Romania which have been directly or indirectly impacted by economic spill-over effects of the war on Ukraine.

Project Objectives

The Project will enhance the lending capacity of Alpha Bank Romania SA and will be channelled for on-lending to businesses in Romania that have been directly or indirectly affected by economic consequences of the war on Ukraine through supply-chain disruptions and other shocks, with the ultimate goal of preserving livelihoods in the country.

Transition Impact

ETI score: 65

ETI score: 65

The transition impact of the project stems from the following qualities:

Resilient - the project will support a systemic bank's resilience to market shocks and diversify its funding structure.

Inclusive - the proceeds of the EBRD loan will support Romanian businesses to remain operational and help them mitigate the economic consequences of negative shocks triggered by the war on Ukraine.

Client Information

ALPHA BANK ROMANIA SA

Alpha Bank Romania SA is a commercial bank incorporated in Romania providing universal banking services. As of December 2021, Alpha Bank Romania SA has a 2.9% market share in terms of total assets (8th largest bank in Romania). It is 99.92% owned by Alpha Bank Services and Holdings SA, Greece.

Moody's Investors Service rates Alpha Bank Romania SA as Ba1 (stable) as of August 2022.

EBRD Finance Summary

RON 195,000,000.00

Total Project Cost

RON 195,000,000.00

Additionality

Financing structure: EBRD financing provides i) long-term funding in local currency in a market with reduced RON liquidity and ii) funding diversification in an environment of high market volatility.

Environmental and Social Summary

Categorised FI (ESP 2019): Alpha Bank Romania is an existing client of EBRD and will be required in relation to this project to continue to comply with PRs 2, 4 & 9, adhere to the EBRD's E&S requirements and submit AESRs to the Bank. The proposed transaction will require Alpha Bank Romania to apply the E&S Exclusion List, which was amended for the 2019 policy and apply the Referral List as per PR9.

Technical Cooperation and Grant Financing

None.

Company Contact Information

nullwww.alphabank.ro
Calea Dorobantilor 237 B, sector 1, Bucharest, Romania

PSD last updated

23 Aug 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

Share this page: