Washington, D.C., October 10, 2008—
IFC, a member of the World Bank Group, announced today it will provide
a €102.5 million loan facility to Banca Transilvania, including a €30
million loan for IFC’s account that would enable the bank to expand housing
finance and loans to micro, small, and medium enterprises mainly outside
the Romanian capital, Bucharest. The facility also includes a €72.5 million
The bank expects to provide up to $3
billion to MSME clients through 150,000 loans by the end of 2013. Its housing
finance portfolio should reach $910 million, issued through 12,000 loans,
by the end of 2013. IFC has previously provided the bank with long-term
financing through mortgage credit lines and Tier II capital instruments.
Robert C. Rekkers, CEO of Banca Transilvania,
said, “This new financing line will facilitate our medium- and long-term
strategic plans. In the context of recent events in international markets,
this major transaction shows that Banca Transilvania has strong business
partners and can continue to access resources to support Romanian entrepreneurs,
SMEs, and the housing sector.”
Shahbaz Mavaddat, IFC’s Director for
Southern Europe and Central Asia, said, "Improving access to finance
for SMEs through private sector banks is particularly important as this
segment of Romania’s economy prepares for competition within the European
Union. We are pleased to extend our long-term partnership with financial
institutions that prioritize serving smaller businesses.”
The initial mandated lead arrangers for
the syndicated loan are IFC, Commerzbank Aktiengesellschaft, Landesbank
Berlin AG, Mashreqbank, Raiffeisen Zentralbank Österreich AG, UniCredit
Bank Austria AG, and Wachovia Bank. Commerzbank, Landesbank Berlin, RZB,
UniCredit Bank Austria, and Wachovia Bank acted as joint bookrunners. Other
banks joining the syndicated loan are Standard Chartered Bank, BANQUE BIA,
CAJA MADRID, and Oberbank AG.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous
year. For more information, visit www.ifc.org.
About Banca Transilvania S.A.
Banca Transilvania is part of the Banca Transilvania Financial Group. In
the 14 years since its inception, it has grown into a large financial institution,
with more than 500 business units and over 6,700 employees. It has a strong
national presence, with particular focus on the northwestern Romanian region
of Transilvania, which accounts for half the bank’s business. Banca Transilvania
is listed on the Bucharest stock exchange and ownership is widespread.
Market share has increased continuously. Banca Transilvania is now the
country’s fifth largest bank.