The Romanian Development Bank (BRD) was recently privatised with the acquisition by Société Générale (SG) of 51% of the shares in the BRD. The proposed equity investment consists of the purchase by the EBRD of 5% of the shares in the BRD.
The principal objective of the EBRD’s investment in BRD is to strengthen the long-term relationship with BRD and support its development. The credit line will be used to continue to support BRD’s lending to small and medium-sized enterprises in Romania.
The investment project supports the first privatisation in the Romanian banking sector: the EBRD’s continuous support to SG-BRD has high demonstration effects for the international investment community. The on-lending of the credit line by BRD will assist the growth and expansion of creditworthy Romanian SMEs.
Established in 1990 as a state owned bank, BRD is the second-largest commercial bank in Romania. BRD has 185 branches across the country, and over EUR 1 billion in assets. BRD is now part of the Société Générale group.
The EBRD will make an equity investment of US$ 20.8 million in BRD. In addition, BRD has benefited from sovereign- guaranteed loans from the EBRD since 1994, which will be replaced by a private sector credit line of US$ 45.2 million.
The privatisation of 51% of BRD amounted to a capital investment of US$ 200 million by SG. The total project costs financed by the private sector credit line, including capital contributions from sub-borrowers, is estimated at USD 70 million.
BRD will continue to carry out its operations in accordance with EBRD's environmental procedures for Local Banks. In implementing these procedures, BRD requires its borrowers to comply, at a minimum, with national /local health, safety, environmental and public consultation requirements.
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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.