ALPHA BANK ROMANIA EQUITY INVESTMENT

Location:

Romania

Project number:

3415

Business sector:

Depository Credit (banks)

Notice type:

Private

Environmental category:

FI

Target board date:

11 Feb 1997

Status:

Completed

PSD disclosed:

10 Jan 1997

Project Description

The original project consisted of an equity investment of US$ 4 million in the Bank of Bucharest, representing 20 per cent of the share capital. In August 1999 EBRD sold half of its participation to the main shareholder, Alpha Credit Bank, retaining a stack of 10 per cent of the shares.
Project objectives:
  • Support of a developing private sector financial institution committed to the local market and expansion of its term lending operations for investment purposes;
  • Development of financial intermediation.

Transition Impact

The loan will support the growth, development and strengthening of a quality private sector institution and the private sector in general by providing term funds needed for the development of private enterprises in Romania.

The Client

Bank of Bucharest is one of the leading private sector banks servicing the corporate and retail sectors in Romania. As at end of 1998 it had net worth totalling US$ 25.01 million and total assets of US$ 111.5 million.

EBRD Finance

The EBRD’s equity participation was instrumental in promoting one of the first greenfield investments in the Romanian banking sector.

Project Cost

US$ 20 million (EUR 8 million equivalent).

Environmental Impact

C/0: The project does not require an environmental analysis or an environmental audit. Sub-projects will be financed in accordance with the EBRD's environmental procedures for financial intermediaries. On an annual basis, Bank of Bucharest will report to the EBRD on environmental issues associated with the credit facility.

Technical Cooperation

None

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.