BT B3T2 Bond (IFC-41084)

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
Active
Bank Risk Rating
U
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
May 22, 2018
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
BANCA TRANSILVANIA 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)
$ 146.16 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 146.16 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jan 31, 2019

Disclosed by Bank Jul 6, 2018


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Project Description

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.

Investment Description
  • International Finance Corporation (IFC)

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. 

Contact Information

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 
Email: mihaela.nadasan@btrl.ro 
Address: Banca Transilvania, Str. G. Baritiu 8, Cluj-Napoca, Romania 
Website: www.bancatransilvania.ro 

2/ The IFC Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

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