BRD - Syndicated Loan

Location:

Romania

Project number:

36773

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

05 Dec 2006

Status:

Completed

PSD disclosed:

05 Oct 2006

Project Description

The proposed project consist of a senior syndicated loan to be extended to Banca Romana pentru Dezvoltare (“BRD”) by the EBRD and several commercial banks under an EBRD A/B structure.

The syndicated loan package will be used to increase BRD’s source of funding which will allow BRD to support its continuous expansion and to introduce new corporate, SME and retail banking products.

Transition Impact

The project will allow to support a strong local bank by mobilising long term resources from the market.

BRD’s extensive branch network will allow the bank to develop business all over Romania with high standards of service. The business financed by the loan will comprise SME finance, long term loans to corporates and retail business such as mortgages.

The operation will also test the appetite of the participants in syndicated markets for long term instruments in Romania and have a demonstration effect for other banks in the country.

The Client

BRD, a Romanian commercial bank based in Bucharest and a subsidiary of Societe Generale Group. BRD is the second largest commercial bank in Romania with 15.4% market share of total banking assets, total balance sheet of EUR 5.3 billion, equity of EUR 496 million and net profit of EUR 134 million at the end-2005 (IFRS 2005 consolidated and audited figures). Total assets further increased to EUR 6.2 billion by end-June 2006 (RAS unconsolidated unaudited figures). During the first half of 2006, BRD registered a net profit of EUR 88 million (RAS unconsolidated unaudited). As of mid-September 2006, its market capitalisation was at EUR 3.4 billion (based on Bucharest Stock Exchange quotation).

EBRD Finance

To be confirmed.

Project Cost

To be confirmed.

Environmental Impact

BRD will continue to comply with EBRD's Environmental Procedures for Intermediated Financing through Local Banks, including adherence to the Environmental Exclusion and Referral List, compliance with the applicable national environmental, labour, health and safety and public consultation requirements, and submission of annual environmental reports to the EBRD.

Technical Cooperation

None.

Company Contact

Banca Romana pentru Dezvoltare (BRD)
Turn BRD,
B-dul Ion Mihalache nr. 1-7,
Bucharest, 011171

E-mail: bertrand.isnard@brd.ro

Contact: Bertrand Isnard - Chief Financial Officer

Phone: (40) (21) 301 68 00
Fax: (40) (21) 301 68 06

 

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)

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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.