Veneto Banca Group to invest $45m in Romania

Italy-based Veneto Banca Group increased its stake in Banca Italo-Romena from 80% to 92.6%, following a capital increase worth 40bn Italian Lire (some $18.1 million).

The other significant shareholder, that is Banca Comerciala Romana (Romanian Commercial Bank-BCR) decided not to participate in the increase, thus reducing its stock to 7.4%. Prior to the increase, BCR, the leading Romanian bank, had held 20% in Italo-Romena. BCR did not care to comment on the information at hand.

“We did not start by agreeing upon them not participating in a capital increase to take place at a later time. They (i.e. BCR) may have decided to back out after the transaction in September last year,” Franco Antiga, Banca Italo-Romena president, told Ziarul Financiar.

Veneto Banca Group last September bought 30% in Italo-Romena from BCR for $3 million. At the same time, it also took over 50% in the bank from the other two Italian shareholders, Banca di Sicilia and Turin-based IMI San Paolo. Following the increase, Banca Italo-Romena has 65bn Italian Lire in share capital (some $29.4 million).

According to Veneto Banca Group CEO, Vicenzo Consoli, the group is just reconfirming its interest in the Romanian market by having increased its stake in Banca Italo-Romena.

“We are planning to invest some 100bn Lire in Romania over the next two years (some $45 million). The money will be directed both to the development of the banking activities and to expanding to leasing and insurance,” Vicenzo Consoli said, adding that most certainly, “everything will be up to the evolution of these projects.”

Veneto Banca Group is to enter leasing and insurance market by the end of the year, Consoli says.

“We have already worked out the leasing project. We will bring an important European leasing player in this segment. As for insurance, we have bought an English insurance company, Royal & Sun Alliance last year, and changed its name into Claris. We will bring this company to Romania no later than the end of the year. We are not interested in buying something, because it is capital to start on your own.”

The group is planning to make a move on the life insurance segment in Romania at first.

Franco Antiga mentioned he was positive that other Italian banks would come to Romania as well, but feels that Italo-Romena’s main card up the sleeve is that “it was the first.”