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IFC Expands Access to Finance for Smaller Businesses and Residential Borrowers in Romania


In Washington, D.C.:
Lotte Pang
Phone: +1 202 758 4290
E-mail: LPang@ifc.org

In Belgrade:
Slobodan Brkic
Phone: +381 11 3023 750
E-mail: SBrkic@ifc.org


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 syndicated loan.

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.

About IFC
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.