The IFC is providing a €102.5mn loan facility to the Romania’s Banca Transilvania. The deal incorporates a €30mn loan on IFC’s account and a €72.5mn syndicated loan.
Acting as initial mandated lead arrangers and bookrunners on the commercial tranche are Commerzbank, Landesbank Berlin, RZB, UniCredit Bank Austria, and Wachovia Bank. Also acting as initial MLA is Mashreqbank.
Also joining the deal are Standard Chartered Bank, Banque BIA, Caja Madrid and Oberbank. IFC is the lender of record on the loans.
The A loan raised by IFC is split into two tranches, a seven-year portion and a ten-year portion. This loan is specifically to support the expansion of the bank’s housing finance and to finance loans for micro, small, and medium-sized enterprises mainly outside of the Romanian capital Bucharest.
The tenor on the B loan is three years and it pays a margin of 125 basis points over Euribor.
During syndication, four tickets were on offer. MLAs were invited to commit €10mn for 125bp; lead arrangers could commit €7.5mn for 115bp; arrangers €5mn for 105bp and co-arrangers €2.5mn for 95bp. This loan is being used for general corporate purposes.
“This new financing line will facilitate our medium- and long-term strategic plans. In the context of recent events in international markets, this major transaction shows that Banca Transilvania has strong business partners and can continue to access resources to support Romanian entrepreneurs, SMEs, and the housing sector,” comments Robert Rekkers, CEO of Banca Transilvania.
Improving access to SME financing via private sector banks is also seen as important component of Romania’s economy as it prepares to compete within the European Union.
At the end of 2007, Banca Transilvania became the fourth largest bank, and the largest domestically owned bank in Romania, with a 5.5% marketshare in total bank assets. It is rated BB- by Fitch Ratings.
Last Updated October 13, 2008
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