| Project description |
The proposed transaction consists of a 7-year loan to Finansbank Romania (the Bank or FB), a fully controlled subsidiary of a former IFC client, Finansbank A.S. Turkey, for up to EUR20 million. The objective of this transaction is to enable the Bank to access long term financing to fund its expansion in the growing sectors of the Romanian economy in particular SMEs.
FB was a result of the acquisition of Banca de Credit Industrial si Comercial SA in Romania in 2000. It is a small dynamic bank with 1% market share in terms of total assets. Finansbank Romania is providing a wide range of SME, corporate and retail banking services. |
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| Project sponsor and major shareholders of project company |
The following is the shareholding structure of the Bank. Finansbank A.S. is part of the FIBA group, an industrial conglomerate operating in Turkey and the region.
Shareholders structure:
- Finansbank International Holding N.V. - 60.62%
- Finansbank Turkey A.S. - 28.04%
- Finans Leasing S.A. Romania - 2.75%
- Total FIBA Group - 91.41%
- Others - 8.59%
- Total - 100%
The shares of Finansbank A.S. Turkey will be bought back by Finans International Holding (part of Fiba Group) as a result of NBG acquisition of Finansbank A.S. Turkey. |
| Total project cost and amount and nature of IFC's investment |
| The proposed IFC investment is an A Loan for IFC’s own account in the amount of up to EUR20 million. |
| Location of project and description of site |
| The Bank is headquartered in Bucharest and has 45 branches operating throughout Romania. |
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| Anticipated development impact of the project |
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;
- strengthening the Bank’s balance sheet, improving its asset liability management and enabling the Bank to expand its financial intermediation capacity.
This project is expected to have a high development impact impacting SMEs. The bank is focusing its lending activity on the SME sector. This is a strategic sector to IFC in Romania which is still under-serviced and is one of the most dynamic sectors of the economy. The project is expected to improve SME access to finance by meeting critical capital investment needs and supporting their growth, and will have a demonstration effect by encouraging other financial institutions to increase lending activities to the underserved segment. |
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| IFC's expected development contribution |
IFC’s role is threefold:
- support south-south investments;
- enhance provision of term financing to SMEs, a sector that is considered the driving force of the Romanian economy;
- encourage improvements of sustainability standards including the environmental and social ones of the EU banking guidelines. |
| Environmental and social issues - Category FI |
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 determine the Applicable Requirements 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 ensure 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.
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| For inquiries about the project, contact: |
Mr. Omer Tetik, VP
12, Splaiul Unirii, Bl B6, 4th district
040034 Bucharest – Romania
Telephone: +40 21 308 5000
Fax: +40 21 318 0969 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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