DCM Alpha Rom (IFC-40824)

Countries
  • Romania
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 28, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
ALPHA BANK ROMANIA SA
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 55.87 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 50
Converted using 2019-05-16 exchange rate.
Project Cost (USD)
$ 223.46 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported 200
Converted using 2019-05-16 exchange rate.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 14, 2019

Disclosed by Bank May 16, 2019


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Project Description

According to the Bank's website, this project provides financing to Alpha Bank Romania SA in an issuance of mortgage covered bonds in order to finance on-lending to residential mortgage borrowers in Romania. 

People Affected By This Project

Market Impact: IFC anticipates that the Project will support development of the Romanian mortgage market and capital markets development in issuance of a new covered bond instrument.
Project Impact: Romania's mortgage market is the smallest in relative terms in the EU at less than 10% of GDP, and the Project is expected to directly support end customers through new supply of mortgage loans.

Investment Description
  • International Finance Corporation (IFC)

Total bond issuance is expected to amount to EUR200 million of which IFC will take up to EUR50 million.

Private Actors

The Bank is the eighth largest bank in the country, with total assets of EUR3.3 billion and equity of EUR367 million as of the end of June 2018. Alpha Bank Romania is a universal bank, with a market share of 3.6% by total assets and 7.2% for mortgage loans. It currently employs approximately 2,000 staff and has a national network of 130 branches in Romania.

Contact Information

No contact information available at time of writing. 

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/