Banca Transilvania subordinated bond (EBRD-49955)

Countries
  • Romania
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
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
Apr 26, 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)
$ 116.11 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 EUR 100
Converted using 2018-07-18 exchange rate.
Project Cost (USD)
$ 330.90 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 EUR 285
Converted using 2018-07-18 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jan 31, 2019

Disclosed by Bank Jul 6, 2018


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Project Description

The EBRD invested EUR 100 million in a subordinated bond issued by Banca Transilvania as part of a total aggregate issuance of EUR 285 million. This is the first subordinated bond listed on the local market and is compliant with the European Union's Capital Requirements Regulation and Capital Requirements Directive IV (commonly referred to as CRR/CRD IV or Basel III).

With this investment, EBRD is seeking to support the optimization of Banca Transilvania's capital structure by increasing the Tier 2 instruments and MREL-eligible funding base, in line with the regulatory requirements to be defined at European and local level.

 

 

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Private Actors

Banca Transilvania SA is a commercial bank incorporated in Romania providing universal banking services. As of March 2018, Banca Transilvania has a 14% market share in terms of total assets (second largest bank in Romania). It is rated BB+ (stable) by Fitch and the EBRD is the largest shareholder with a current stake of 8.6%.

Contact Information

COMPANY CONTACT INFORMATION

Mihaela Nadasan

mihaela.nadasan@btrl.ro

+40(0)264.407.150

General inquiries

EBRD project inquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by a European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.