41084 - BT B3T2 Bond

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

41084

Company Name

BANCA TRANSILVANIA SA

Date SPI Disclosed

Jul 6, 2018

Country

Romania

Region

Europe

Projected Board Date

May 22, 2018

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jul 6, 2018

Department

Regional Industry - FIG - ECA

Industry

Financial Markets

Previous Events

Approved : May 22, 2018
Signed : Jun 22, 2018
Invested : Jun 28, 2018

Sector

Commercial Banking - General

Project Description

The proposed project involves an IFC investment of up to EUR120 million, approximately equivalent to US$146 million, in a Basel III compliant subordinated bond to be issued by Banca Transilvania S.A. (“BT” or the “Bank”) as Tier 2 capital in order to strengthen and diversify BT’s capital base (the “Project”).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	145.16
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Quasi-Equity	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

(i) Longer term financing than generally available at the market and a unique instrument (first-ever issuance of a Basel III compliant tier 2 capital instrument in Romania), supported by IFC's expertise in structuring and pricing of such securities; (ii) Playing an anchor investor role for the issuance thereby crowding in other investors; (iii) The Basel III compliant bond of BT may become a reference for other banks in the country and the region in terms of structuring and placement within the existing regulatory framework, thus popularizing this type of capital instrument.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

This project consists of an IFC investment of up to EUR120 million subordinated bond to be issued by Banca Transilvania S.A. The highest exposure in Banca Transilvania's portfolio is to manufacturing; wholesale and retail trade; information and communication; arts, entertainment and recreation; agriculture, forestry and fishing; and construction with potential limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. The project has therefore been classified as FI-2 according to IFC Sustainability Policy. For this particular project, IFC's applicable E&S requirements will be to ensure that the entire portfolio of the Bank, and the portfolio of the Bank's relevant subsidiaries are screened against the IFC Exclusion List, the applicable environmental and social national laws and regulations, and IFC Performance Standards. In addition, Banca Transilvania and relevant subsidiaries will comply with the requirements of IFC's PS2 on Labor and Working conditions.

The key challenge in this investment will be for Banca Transilvania and its relevant subsidiaries to manage the E&S risks associated with the activities of its borrowers in line with IFC's applicable E&S requirements. Banca Transilvania has an Environmental and Social Management System (ESMS) in place and has designated staff members with overall responsibility for its implementation. The Bank will enhance their ESMS in line with the requirements of this project, and ensure staff has adequate capacity for ESMS implementation. The Bank's relevant subsidiaries will also adapt E&S policies and procedures in line with the Bank's ESMS to ensure their financing activities are in line with the applicable E&S requirements. Based on available information, Banca Transilvania and its key subsidiaries, are compliant with IFC's PS2 on Labor and Working Conditions.

Task Title & Description	Anticipated Completion Date
Staff Training	09/26/2018
Provide complete and updated information on the Bank's and relevant subsidiaries' portfolio to IFC	06/22/2018
Notify IFC of ESMS officer appointment for the Bank’s relevant subsidiaries	07/22/2018
Enhance and revise the ESMS of the Bank	06/22/2018
Develop/Enhance the ESMS of the relevant subsidiaries	07/22/2018
Provide IFC with an implementation records for the Bank and relevant subsidiaries	12/25/2018
Provide IFC with monitoring reports for the for the Bank and relevant subsidiaries	02/23/2019

Contacts

For Inquiries About the Project, Contact

Banca Transilvania S.A.
Mihaela Nadasan
Executive Manager, Head of FI and International Relations
+40(0)264.407.150
mihaela.nadasan@btrl.ro
Banca Transilvania, Str. G. Baritiu 8, Cluj-Napoca, Romania
www.bancatransilvania.ro

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

Development Results

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer