Banca Transilvania borrows 15m euros from IFC

Banca Transilvania will take out a subordinated loan of up to 15 million euros from the IFC, World Bank’s investment arm. The loan granted by the supranational institution is part of a bigger funding project, worth 75 million euros, that Banca Transilvania (BT) intends to run. EBRD, BT’s main shareholder, in turn participated to this facility with a 15 million-euro loan. The total number of creditors stands at five, each contributing its own line of credit. The names of the other participants to this facility have not been disclosed. BT has recently performed an increase in its share capital, attracting 156 million RON (equivalent to 47 million euros) from its shareholders. The IFC loan will be issued over a seven-year period. The funds are to be used to sustain crediting activity for small and medium-sized enterprises and in the real estate field. The managing board of the IFC will make the final decision on this line of credit on November 10.