Banca Transilvania is a mid-sized regional Romanian bank, founded in 1993 by a group of local entrepreneurs and listed on the Bucharest Stock Exchange since 1997. Headquartered in Cluj-Napoca, BT operates through a network of 307 branches and agencies in major Romanian cities and employs over 4,000 staff. BT’s traditional area of strength is SME and retail, however over the years the Bank branched out in other areas, such as leasing, insurance, and investment banking. BT is one of the three banks listed on the Bucharest Stock Exchange. Its shareholding is widely dispersed among legal entities and individuals.

The total project cost is EUR75 million. The proposed IFC investment is a EUR15 million subordinated loan for IFC’s own account.

18.85 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	18.85
Equity

* These investment figures are indicative

The Bank is headquartered in Cluj-Napoca, Romania, with 307 branches across Romania. Investments can be made throughout Romania.

The development impact of this transaction would include:

- providing long term funding to fast growing Romanian SMEs that have become a significant engine of growth, and
- strengthening the Bank’s capital base, facilitating a better asset-liability management and enabling the Bank to expand its financial intermediation capacity.

IFC’s expected development contribution is three fold:

- support the further strengthening of the Bank’s capital base;
- enhance intermediation of term financing to SMEs and to mortgage borrowers;
- encourage improvements in corporate governance, and institutional and environmental capacity of the Bank.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the FI portfolio and the determine the Applicable Requirements if any, based on an analysis of the potential Environmental and Social risks associated with the FI portfolio. The Applicable Requirements would include:

- the IFC Exclusion List, and/or
- the National Environmental and Social Laws

Based on the Applicable Requirements, the project will be required to:

- Develop an Environmental and Social Management System (ESMS), prior to disbursement that is satisfactory to IFC, to ensures that its investments/activities are in compliance with Applicable Requirements.
- Identify responsible qualified persons to manage the ESMS.
- Commit to implement the ESMS and take action to remedy any gaps in ESMS implementation on an ongoing basis.
- Submit a periodic report to IFC as per a format to be provided by IFC.

IFC will also review, if required, the capacity of the FI to establish and maintain and ESMS and suggest Supplemental Action to address any gaps.