BANK POST CONVERTIBLE LOAN

Location:

Romania

Project number:

4453

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

16 Jun 1998

Status:

Complete

PSD disclosed:

18 May 1998

Project Description

A pre-privatisation subordinated convertible loan of up to US$ 10 million to Bank Post to support its privatisation, which is anticipated to take place in 1998.
The main objective of the facility is to support the privatisation process that is scheduled to take place before the end of 1998 by encouraging interest from investors. The strengthening of BP's capital adequacy will also allow further expansion and diversification of its business together with the other specific objectives of the facility. These concern lending to corporate customers, developing new products, achieving integrated computerisation and supporting BP's development.

Transition Impact

By supporting the privatisation of Bank Post, a major state-owned bank, the operation will contribute to the promotion of a sound private banking system in Romania and will facilitate the financing of private corporate customers.

The Client

Bank Post (BP) was established in 1991 as a fully state-owned joint-stock company and began operations in early 1992. It has developed as a commercial bank, providing services to corporate as well as retail customers. Its corporate client base includes Regies Autonomes (national companies in strategic sectors of the Romanian economy) as well as the increasingly important small and medium-sized companies in the private sector. BP now competes with a broad spectrum of Romania's larger banks for lending opportunities and deposits.

EBRD Finance

A subordinated convertible loan of up to US$ 10 million extended for a period of 10 years, which will form part of BP's capital base, with an option to convert into ordinary shares of BP.

Project Cost

The total project cost is US$ 10 million (ECU 9.0 million).

Environmental Impact

The Bank will adopt and implement environmental procedures satisfactory to the EBRD, and all activities will be required to comply with the Bank's FI Environmental Exclusion List. All borrowers will be required to comply, at a minimum, with health, safety and environmental standards and regulations and public information/participation requirements in Romania. On an annual basis, Bank Post will report to the EBRD on environmental issues.

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

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

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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