Banca Transilvania subordinated bond

Location:

Romania

Project number:

49955

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

26 Apr 2018

Status:

Signed

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

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

None.

Company Contact Information

Mihaela Nadasan
mihaela.nadasan@btrl.ro
+40(0)264.407.150
Business opportunities

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

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
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.