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Banca Transilvania (sub. loan)

Romania | Financial Institutions

Identification Code:: OP/18/0008
Total Operation Cost:: 350.000.000 EUR
Maturity:: 120 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 EUR – 13 Jun 2018
: BSTDB Signed Amount – Signed Date

10.000.000 EUR – 21 Jun 2018
: Status:
Active
Description and Purpose of the Operation:: Banca Transilvania (sub. loan)
Countries of Operation:: Romania (100,00%)
Financial Product:: Loans
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Participation to Subordinated Bond Issue of Banca Transilvania
Co-Financers/Participants:: EBRD, IFC, EFSE
Guarantors/Sponsors:: N/A
Developmental and Regional Cooperation Impact:: While there is no ex-ante information in the project document regarding how the funding will be utilized, BT has verbally committed to provide side letter indicating that funds will be utilized for SME financing. Given that bank’s current lending portfolio is focused on SME is a supporting fact that BSTDB financing will highly likely be used to fund SMEs. In that case project will have favorable economic benefits for the Romanian economy, except the most relevant being additional tax revenue gains from increased economic activity under the additional amount provided. Depending on where the bank will channel the funds, the project can further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy in Romania.
Environmental Classification and Impact:: Banca Transilvania has developed and implemented a comprehensive environmental and social (E&S) management system commensurable with its activities and has fully integrated it in the general portfolio management. It consists of the BT E&S Risk Policy, Exclusion List, and the E&S risk management procedures, including the guidelines for performance screening standards, definitions and requirements for risk assessment, and risk categorization forms. These were originally developed to meet the EBRD’s E&S requirements for FIs. The analysis of these documents confirmed compliance also with the BSTDB’s requirements towards financial intermediaries. Overall, the E&S management system is well-integrated in the credit cycle and is applied systematically to the entire portfolio.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org