Banca Transilvania gets 32.5m euros for loans

The European Bank for Reconstruction and Development (EBRD) is increasing its exposure to Banca Transilvania by a further 7.5 million euros, as part of a financial arrangement that also includes a syndicated loan from several investment banks worth 15 million euros. The 22.5 million euro funding contract was signed on Friday. A little while before that, Banca Transilvania had received 10 million euros from Netherlands Development Finance Company (FMO) for seven years, with the money scheduled to be used for loans to SMEs. The syndicated 15 million euro loan would be the third such arrangement the Romanian bank gets after those secured by BCR ($200 million) and Raiffeisen Bank ($250 million) this year. EBRD’s involvement helped turn the money-raising operation into a success, which took a little more than one month to complete. Banca Transilvania, after all, enjoys the constant support of the international financial institution, which is its largest individual shareholder, due to its 15% of the 67.5 million euro share capital. The loans in the above-mentioned arrangement will mature in five to seven years. ZF