IFC Invests $40 Million to Support Growth of Romania’s Banca Transilvania
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, a press relese sent to ACTMedia informs. 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 growth plans.
“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, visit www.jbic.go.jp/en.