Cluj, Romania, May 12, 2014 — The
IFC Capitalization Fund, a fund managed by IFC Asset Management Company,
is investing $40 million in Banca Transilvania (BT), the third largest
bank by assets in Romania. The $40 million subordinated loan will strengthen
BT’s capital base and support the growth of a systemically important bank
in the region focused on small and medium enterprises (SMEs).
"This is the third investment in
the region for the IFC Capitalization Fund, and the ninth project overall
for IFC with Banca Transilvania. We are happy to continue this long-standing
partnership between IFC and BT as the bank continues to grow and improve
access to finance in the region,” said Marcos Brujis, Head of the IFC
Capitalization Fund, a $3 billion fund which was made possible by commitments
from IFC and Japan Bank for International Cooperation (JBIC).
IFC’s relationship with BT dates back
to 2004, when IFC extended a senior loan to BT for mortgage on-lending.
Since then, IFC has invested in a series of senior, subordinated, and convertible
debt instruments for the bank. This current investment is expected to further
strengthen the relationship by helping to finance the bank’s continued
“This new facility will allow us to
continue our ambitious plans for organic growth and to capture further
market share, mainly in the segment where we are already a trend-setter,”
said Omer Tetik, BT’s Chief Executive Officer. “Banca Transilvania has
incurred great benefits from its long-term relationship with IFC, not only
in terms of obtaining financing facilities from a shareholder but also
by having access to the vast SME banking and emerging markets know-how
of the institution.”
Romania became an IFC member in 1990,
and IFC has invested a total of $2.2 billion in the country since then.
IFC’s financial markets strategy in Central and Southern Europe is to
partner with systemic banks in order to sustain economic growth and job
creation. IFC has invested across a variety of sectors and works to provide
access to finance for smaller businesses in region.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org.
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC,
invests third-party capital, enabling outside investors to benefit from
IFC’s expertise in achieving strong equity returns, as well as positive
development impact in the countries in which it invests. It manages $6.3
billion of capital across six investment funds.
About the IFC Capitalization Fund
The IFC Capitalization Fund is a global
equity and subordinated debt fund supported by commitments from IFC and
JBIC. It aims to strengthen banks considered vital to the financial system
of emerging markets.
JBIC is a policy-based financial institution
wholly owned by the Japanese government, which has the objective of contributing
to the sound development of Japan and the international economy and society,
by conducting financial operation in the following four fields: Promoting
the overseas development and securement of resources which are important
for Japan; Maintaining and improving the international competitiveness
of Japanese industries; Promoting the overseas business having the purpose
of preserving the global environment, such as preventing global warming;
Preventing disruptions to international financial order or taking appropriate
measures with respect to damages caused by such disruption. For more information,