IFC provides €100 million to Banca Transilvania as part of a €200 million subordinated bond package alongside Asian Infrastructure Investment Bank

• The subordinated debt, to be listed on the Bucharest Stock Exchange
• This financing initiative addresses challenges stemming from the country's outdated, inadequate, and energy-inefficient housing supply
• Ranked fifth in greenhouse gas (GHG) emissions among EU countries, Romania needs to take urgent action to reduce its carbon footprint
• The partnership between IFC and Banca Transilvania means, since 2004, 14 investments and 3 advisory projects

IFC is providing EUR 100 million to Banca Transilvania, the largest bank in the country, as part of a EUR 200 million subordinated debt financing package alongside the Asian Infrastructure Investment Bank (AIIB). A targeted IFC investment aims to increase access to residential mortgages in Romania while helping mitigate climate change and strengthen the country’s banking sector.

This financing initiative addresses challenges stemming from the country's outdated, inadequate, and energy-inefficient housing supply. It will expand housing finance options and improve living conditions by encouraging the supply of more efficient and environmentally friendly housing.

The new financing facility supported by IFC helps us to step up our financing efforts in areas of interest for the transition to a sustainable economy in Romania. Thus, directing the funds obtained to green mortgages will reduce energy consumption and greenhouse gas emissions, while ensuring improved living conditions - said Ӧmer Tetik, CEO Banca Transilvania.

Ranking fifth highest in greenhouse gas (GHG) emissions among EU countries and 42nd globally, Romania needs to take urgent action to reduce its carbon footprint, green its housing stock, and improve air quality and energy efficiency. The investment from IFC will be primarily dedicated to residential mortgage financing, with a minimum of 80 percent allocated to green mortgages.

The subordinated debt, to be listed on the Bucharest Stock Exchange, adheres to the regulatory frameworks of Basel III, as well as of the EU and Romania. By serving as Tier 2 capital, the hybrid capital instrument will help enhance BT's resilience and bolster Romania's banking sector.

Private sector investment is key to increasing access to affordable housing finance. We aim to tackle Romania's housing problem together with our long-term partner BT, while helping the country achieve its climate change reduction goals by improving the energy efficiency of homes - said Rana Karadsheh, IFC Regional Director.

Since 2004, IFC’s partnership with Banca Transilvania has led to 14 investments and three advisory projects.

Asian Infrastructure Investment Bank Policy: 

Asian Infrastructure Investment Bank's Policy on the Project Affected Population Facility is available here for Banca Transilvania stakeholders. Concerns on social and environmental issues can be submitted through the indicated website.