Project description
and objectives:
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The proposed project is a senior loan to Banca Comerciala Romana (BCR), the
largest commercial bank of Romania, to support development of long-term
lending to individuals for real estate investment purposes. This project
follows up on a previous Mortgage Loan I signed in January 2003 and
successfully implemented by BCR. The proposed loan will be used in 2005/2006
for extending residential mortgage sub-loans to individuals from all over
Romania.
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Transition impact:
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The transaction will support BCR in strengthening its position in the Romanian
market by providing long-term financial resources to match its long-term
mortgage lending. In this way, BCR will be able to continue building a
mortgage portfolio of significant size so as to permit securitisation when
market conditions will be appropriate and legislation will be in force.
Mortgage lending is at a growth stage in Romania and the EBRD loan will
increase provision of long-term funding available in the banking sector. It
will allow an increasing number of people to access bank financing for
purchasing, renovating and/or constructing residences.
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The client:
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BCR is the largest Romanian bank, with a 26% market share of total banking
assets at June 2005, total assets of some EUR 7.3 billion, total equity of
over EUR one billion and net profit of some EUR 123 million (RAS, unaudited).
BCR is currently owned by the Romanian state (represented through AVAS) with a
36.8% share, by EBRD and IFC (each of them having a participation of 12.5%
plus one share) and by 5 Romanian private investment funds (SIFs) and
employees with a total shareholding of 38.2%. BCR is currently under
privatisation with a deadline of 17 October 2005 for binding offers from the 9
reputable international investors.
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EBRD finance:
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EUR 50 million Credit Line in three tranches to BCR to be on-lent by BCR to
private individuals as residential mortgage loans.
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Total project cost:
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EUR 50 million.
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Environmental impact:
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BCR will continue to implement the EBRD’s Environmental Procedures for
Residential Mortgage Lending for all mortgage loans under the credit line. The
procedures require that a survey be undertaken for each loan considered to
ensure, among other things, compliance with applicable national environmental,
health, safety and public disclosure standards and regulations.
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Technical
cooperation:
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BCR benefited for TC funding back in 2000-2003 funded by the EU under the SME
Finance Facilities. No TC is proposed for this transaction.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mrs. Cornelia Busca, Executive Manager
E-mail: corneliab@bcr.ro
Phone:
+40 21 310 27 85
Fax: +40 21 313 12 46
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EBRD contact:
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Alexandru Tanase, Operation Leader: tanasea@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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