The proposed project involves an IFC investment of up to EUR120 million (approximately US$146 million) in a Basel III compliant subordinated bond issued by Banca Transilvania S.A. (“BT” or the “Bank”) as Tier 2 capital. The project aims to strengthen and diversify BT’s capital base (the “Project”). The project objectives are followed:
(i) Increasing competitiveness by support regional SME with active consolidation strategy;
(ii) Significant market creation effect through the issuance of the first bond of this type in Romania, helping set the standards for future issuances;
(iii) Increased access to finance for local SMEs, especially operating in less developed regions of the country.
BT is a Romanian bank with a market share of 13.9% in terms of assets as of December 31, 2017. BT was established in Cluj in 1994 at the initiative of local businessmen as a regional bank.
Currently, the bank operates through 550 offices with over 6,000 employees. BT entitles itself 'the Bank for Entrepreneurial People in Romania', and its mission is to support the development of the business environment, with a focus on MSMEs.
With its headquarter in Cluj. BT is listed on the Bucharest Stock Exchange since 1997 and has a diversified shareholding structure with 49% foreign and 51% Romanian shareholders.
There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).
The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.
The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|Banca Transilvania||Investor||Finance||invests in||ALRO SA||Client||Mining|
|Banca Transilvania||Investor||Finance||invests in||Globalworth Re Invests Ltd||Parent Company||Infrastructure|
|Banca Transilvania||Investor||Finance||invests in||Maxon Ltd||Parent Company||Mining|
|Maxon Ltd||Parent Company||Mining||owns||ALRO SA||Client||Mining|
1/ The Project Contact
Banca Transilvania S.A.
Name: Mihaela Nadasan
Title: Executive Manager, Head of FI and International Relations
Phone number: +40(0)264.407.150
Address: Banca Transilvania, Str. G. Baritiu 8, Cluj-Napoca, Romania
2/ The IFC Contact
General IFC Inquiries
2121 Pennsylvania Avenue, NW
Washington DC 20433
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/