Piraeus Bank Romania - Equity Investment

Location:

Romania

Project number:

49714

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

26 Apr 2018

Status:

Disbursing

PSD disclosed:

02 Aug 2018

Translated version of this PSD: Romanian

Project Description

EBRD has acquired a 19% stake in Piraeus Bank Romania ("PBR") from Piraeus Group (Greece), alongside J.C. Flowers ("JCF"), a private equity fund, and PBR management. The EBRD and JCF own shares in a Luxembourg investment vehicle that in turn owns 95.1% of the share capital of PBR, while bank management owns the remaining 4.9%.

Project Objectives

EBRD's investment will provide financial resources and restructuring expertise needed to expand PBR's operations and market share. The change of ownership will also help strengthen the fragmented Romanian financial sector.

Transition Impact

The project's transition impact will be derived from demonstration of successful turnaround, providing the financial resources to strengthen PBR's core banking operations and expand its market share in the country.

Client Information

Piraeus Bank Romania is among the largest retail banks in Romania with total assets of €1,446 million and equity of €149 million at end-2016. PBR was earmarked for sale by Piraeus Group as part of the latter's commitment to the European Commission for the disposal of its non-core assets.

J.C. Flowers is a leading private investment firm with assets under management of more than USD 6 billion as of July 2018, dedicated to investments in the financial services industry.

EBRD Finance Summary

N/A

Total Project Cost

N/A

Environmental and Social Summary

Categorised FI (2014 Policy). Given that the proposed investment involves an equity stake, the client will be required to adhere to the Bank's PR9, PR2 and the relevant sections of PR4 within the 2014 Environmental and Social Policy; as well as the relevant EBRD E&S Procedures for lending/transactions across the entire portfolio.

Technical Cooperation

None.

Company Contact Information

Svet Klimentov
kliments@ebrd.com

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

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Text of the PIP

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