Romexterra Leasing: Stagnation due to takeover

Cornel Coca Constantinescu, chairman of Romexterra Leasing, the financial leasing arm of Romexterra Bank, says the firm waited for the takeover process to end to apply the new shareholder’s strategy.
“We’ve spent our time changing the strategy lately and we had to adjust to the changes in the shareholder structure. In such processes, as a rule, companies do not rush onto the market to sell their products, but they rather wait for the takeover process to end and then apply the strategy of the new shareholder,” stated Cornel Coca Constantinescu.
Romexterra Leasing in the first ten months of this year financed contracts worth 17 million euros, less than the about 19 million euros registered in the similar period of last year. The company says it holds a market share of around 1%. Romexterra Bank and its units, Romexterra Leasing and Romexterra Finance, were taken over by MKB, a bank owned by Germany’s Bayern LB credit institution in October. In the wake of the deal, MKB took over 55.36% in Romexterra Bank. Constantinescu said Romexterra Leasing would contract a refinancing loan worth 6 million euros from MKB Bank Nyrt this November.
“The loan is in fact the result of the finalisation of the takeover by Bayerische group through MKB. A total sum of 6 million euros will be released for Romexterra Leasing,” added Constantinescu.
The company plans to invest at least 6 million euros in the next 2 months, which will be entirely used for vehicle purchase financing.
“The company’s target is to place at least 6 million euros, plus the capital we own, by yearend. Overall, we want to release financing worth 8-9 million euros,” Constantinescu also said.
This is the second loan Romexterra Leasing has contracted this year.
More than 60% of contracts included in the company’s portfolio were signed for vehicle, as well as vehicle fleet acquisitions. Equipment weighs 30% in total contracts, with the rest accounting for financing for boats and office equipment.
Constantinescu also said equipment financing was largely released for the acquisition of oil equipment, especially by foreign customers. The value of cross-border contracts related to oil equipment financing stands at 17 million euros. Total contracts in progress at the moment have a cumulated value of 46 million euros.
Of the total contracts, 90% are signed by corporate customers. Romexterra Leasing has between 400 and 500 individual customers, who usually request car financing.
Romexterra Leasing has 25 outlets, of which only ten operate at present, especially as during the takeover process some activities stagnated and no financing sources were drawn from the banking market. The company’s majority shareholder is Romexterra Bank (89.59%), followed by Petromservice, Grup Servicii Petroliere (each with 2.21%) and other shareholders (5.99%).

Romexterra Leasing
Was taken over by MKB in October
In the first 10 months of this year financed contracts worth 17m euros, below the 19m euros level in the same period of last year
Is to contract a 6m-euros refinancing loan from MKB in November, to be entirely used for financing of vehicle acquisitions
Over 60% of contracts are signed for vehicle acquisitions, while equipment weighs 30% in total contracts, and the rest is made up of financing for boats and office equipment