BT is a nationally represented Romanian financial institution, 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 500 branches and agencies in major Romanian cities and employs over 6,000 staff. BT has the fourth largest branch network in Romania and has established a strong presence in the healthcare sector with its customized lending and savings products, provided through a network of dedicated offices. BT is the largest bank with majority Romanian private capital; its shares are listed on the Bucharest Stock Exchange. The shareholding of the Bank is well distributed among legal entities and individuals. The largest shareholder is the EBRD with 14.97%; the remaining shares were distributed among Romanian individuals (37.64%, 44% of which is held by the founding members), domestic companies (23.55%, 62% of which is held by investment companies – SIFs), foreign individuals (6.32%) and foreign companies (17.52%) at end–2008.

The proposed IFC investment is an A Loan for IFC’s own account in the amount of up to EUR50 million.

71.39 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	71.39
Equity

* These investment figures are indicative

The Bank is headquartered in Cluj-Napoca, Romania, with over 500 branches and agencies across Romania. Investments can be made throughout Romania.

The proposed project is expected to have strong development impacts in supporting underserved segment of the Romanian economy, namely private healthcare providers, and in contributing to improved access to healthcare, especially primary care, and increased standards of care for wide strata of Romanian population. The Project would contribute to development and increased transparency of the private healthcare sector in the Romania through supporting the institutionalization of private providers migrating from informal business and grey areas within the public sector. The Projects would support small, micro enterprises and individual healthcare professionals by providing access to finance on acceptable terms, enabling them to expand and modernize their operations. Finally, the Project would contribute to retention of qualified healthcare professionals in the Country and in the health sector by expanding opportunities for employment in private health sector or starting own business.

IFC’s key roles are: - Provide long-term financing on competitive terms, not easily obtainable in the Country, to a leading local player allowing it to expand market share in a growing and attractive market segment - Share with the Bank its global expertise in wholesale and SME lending in the healthcare sector - Introduce new criteria of screening and risk rating of end borrowers to help mitigate certain sector-specific risks

As an existing client, BT has procedures to assess environmental and social risks and to screen against national laws and IFC''s exclusion list. This appraisal will focus on the effectiveness of BT''s procedures for its existing healthcare portfolio. IFC will make recommendations for enhancements to BT''s procedures if needed and work with the client to formalize these into an SEMS. The appraisal will also consider if the scope of BT''s SEMS will need to be expanded to include screening against the IFC Performance Standards (specifically Life and Fire Safety) and BT''s compliance with IFC Performance Standard 2: Labor and Working Conditions.