Banca Transilvania Sub Tender

Identification Code OP180008Total Operation Cost 350.000.000Maturity 120 monthsDescription and Purpose of the Operation Banca Transilvania sub. loanCountries of Operation Romania 10000 Financial Product LoansSector Financial InstitutionsDomain PrivateBorrowerClient Participation to Subordinated Bond Issue of Banca TransilvaniaDevelopmental and Regional Cooperation ImpactWhile there is no ex-ante information in the project document regarding how the funding will be utilized BT has verbally committed to provide side letter indicating that funds will be utilized for SME financing. Given that banks current lending portfolio is focused on SME is a supporting fact that BSTDB financing will highly likely be used to fund SMEs. In that case project will have favorable economic benefits for the Romanian economy except the most relevant being additional tax revenue gains from increased economic activity under the additional amount provided. Depending on where the bank will channel the funds the project can further enhance benefits such as increases in employment increase in export capacity and competitiveness and multiplier effects for other parts of the economy in Romania.Banca Transilvania has developed and implemented a comprehensive environmental and social ES management system commensurable with its activities and has fully integrated it in the general portfolio management. It consists of the BT ES Risk Policy Exclusion List and the ES risk management procedures including the guidelines for performance screening standards definitions and requirements for risk assessment and risk categorization forms. These were originally developed to meet the EBRDs ES requirements for FIs. The analysis of these documents confirmed compliance also with the BSTDBs requirements towards financial intermediaries. Overall the ES management system is well-integrated in the credit cycle and is applied systematically to the entire portfolio.