Summary of Proposed Investment
Project Number
24559
Company Name
BANCA COMERCIALA ROMANA SA
Date SPI Disclosed
Sep 19, 2005
Country
Romania
Industry
Financial Markets
Projected Board Date
Oct 18, 2005
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Nov 17, 2005
Signed : Dec 7, 2005
Invested : Dec 22, 2005
Project Description
The project consists of a senior loan of up to EUR75 million to Banca Comerciala Romana SA (BCR or the bank). The Loan will be used to support the Bank’s long-term funding activities and prudently manage its balance sheet by enabling it to address maturity mismatches between long-term currency assets and short-term currency liabilities, and release the necessary funding to support the growth and expansion of Romanian private sector entities.
The proposed loan is being processed in parallel with BCR’s on-going privatization which is expected to be completed by the end of FY 2005.
BCR was incorporated in 1990 as a spin-off of the National Bank of Romania, which carried out the majority of banking activities in Romania during the former communist regime. Five newly-established state-owned banks were created according to customer profile, similar to other bank restructurings in former communist regime countries. The clients transferred to BCR comprised mainly the country’s largest state-owned industrial companies. Over the last decade, however, the Bank’s customer base has moved away from the state-owned corporate sector to private enterprises and individuals.
BCR is the largest bank in Romania in terms of assets (US$9.2 billion as of June 30, 2005) and customer base (5 million clients). It operates as a full-fledged commercial bank, with a focus on expanding its business with small and medium-sized enterprises. As at the end of March 2005, the Bank’s market share accounted for 26% of banking assets.
The proposed loan is being processed in parallel with BCR’s on-going privatization which is expected to be completed by the end of FY 2005.
BCR was incorporated in 1990 as a spin-off of the National Bank of Romania, which carried out the majority of banking activities in Romania during the former communist regime. Five newly-established state-owned banks were created according to customer profile, similar to other bank restructurings in former communist regime countries. The clients transferred to BCR comprised mainly the country’s largest state-owned industrial companies. Over the last decade, however, the Bank’s customer base has moved away from the state-owned corporate sector to private enterprises and individuals.
BCR is the largest bank in Romania in terms of assets (US$9.2 billion as of June 30, 2005) and customer base (5 million clients). It operates as a full-fledged commercial bank, with a focus on expanding its business with small and medium-sized enterprises. As at the end of March 2005, the Bank’s market share accounted for 26% of banking assets.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Banca Comerciala Romana
B-dul Elisabeta, No. 5
Bucarest 030016
Romania
B-dul Elisabeta, No. 5
Bucarest 030016
Romania