BCR to raise $250m from foreign markets

The Romanian Commercial Bank (BCR) is planning to borrow over $250 million next year from the foreign markets, a rather considerable amount for a Romanian bank.

BCR officials have appointed Bank Austria Creditanstalt, Citibank, Erste Bank and Raiffeisen to attract a syndicated loan worth $100 million in January 2004.

Moreover, BCR president Nicolae Danila says the bank also plans to issue eurobonds on the foreign markets in the first part of next year.

“We intend to take an eurobond issue to the foreign markets, and we are in talks with two investment banks to broker the transaction. We aim to raise 150 million euros, as the costs would not be justified for a smaller amount. The bonds will probably be issued for seven or ten years,” BCR president Nicolae Danila told the Banking on Romania conference, which was organised in London in co-operation with British publication The Banker. According to Danila, the bond issue is likely to be launched in April – May 2004.

Until then, BCR will borrow $100 million in a syndicated loan maturing in 5 years and benefiting from a 4 year-grace period, which is meant to cover some general financing needs.

BCR officials have already begun the preparations to go on the foreign markets, having presented a complete overview of the BCR group to the bankers and investors attending the conference hosted by The Banker.

BCR is currently undergoing the privatisation process, which started this fall after the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) took over a 25% stake in the bank.

BCR controls 33% of the Romanian banking market and manages over 4 million accounts. The bank’s market value amounts to $1 billion.
oana.nuta@zf.ro ; razvan.voican@zf.ro