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| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
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| Project number | 10031 |
| Project name | Banca Romaneasca |
| Country | Romania |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Banca Romaneasca S.A. |
| Environmental category | FI |
| Date SPI disclosed | May 26, 2000 |
| Projected board date | June 27, 2000 |
| Status | Completed |
| Previous Events | Invested: June 12, 2001
Signed: April 2, 2001
Approved: August 7, 2000 |
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| Project sponsor and major shareholders of project company |
| Banca Romaneasca is a privately held Romanian commercial bank. Romanian American Enterprise Fund (RAEF) owns 69% of Banca Romaneasca. RAEF is a private U.S. based corporation. It was established in 1994 and capitalized by a grant from USAID to promote the development of the Romanian private sector through investments in and loans to private sector enterprises. |
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| Total project cost and proposed IFC investment |
| The proposed IFC investment in Banca Romaneasca is $6 million for IFC's own account, including a $3 million A loan and quasi-equity in the form of a convertible loan of $3 million. |
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| Location of project and description of site |
| Banca Romaneasca is headquartered in Bucharest and has 15 branches across Romania. |
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| Description of company and purpose of project |
| Banca Romaneasca is among the smaller banks in the Romanian banking market and aimed at servicing SMEs. The bank will receive broad technical assistance (TA) from a first class reputable Dutch bank, with a view to transform Banca Romaneasca into a sustainable, competitive financial institution. The TA will strengthen the bank's banking skills and term-lending expertise. By providing a credit line to a local, second-tier bank to be on-lent to private SMEs, IFC will support the Romanian SME sector. In this case, IFC will facilitate SMEs' access to term financing, which is scarce in Romania. The ultimate goal of the project is to create a viable banking institution and creditworthy private enterprises, which could eventually become attractive opportunities for foreign direct investment. |
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| Environmental and social issues - Category FI |
This a Category FI Type 2 project according to IFC's environmental and social review procedure. Banca Romaneasca has commited to developing an environmental management system designed to ensure that SME clients comply with the environmental, health and safety requirements of Romania and IFc's Microfinance Exclusion List. Banca Romaneasca will attend IFC-sponsored environmental training and will provide IFC with an annual environmental performance report.
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| To contact the project company, please write to: |
| sramaswami@ ifc.org |
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