Banc Post

completed

Summary Of Project Information (SPI)Project NameRoumania-Banc PostRegionEuropeSectorProject No008944Projected Board DateApril 20, 1998Company NameBanc PostTechnical Partner and/or Major Shareholders The Bank is currently 70% owned by the State Ownership Fund, the public entity which is entrusted with the administration of the Romanian State’s shareholdings in the corporate sector pending privatization.Project Cost Including Proposed IFC Investment Up to US$20 million including IFC’s convertible loan of up to US$10 million.Location of Project and Description of Site Bucharest, Romania     Description of Company and Purpose of Project The Government has announced plans for Banc Post to be one of the first two Romanian banks to be privatized. IFC’s loan would be partly convertible into shares upon privatization of the Bank. The proposed IFC financing is structured to enhance the Bank’s operating capacity, thereby making it more attractive to prospective strategic investors. IFC’s loan would strengthen BP’s balance sheet and help, inter alia, finance the modernization of the Bank’s branch network and IT systems. The project involves providing a convertible loan, possibly subordinated, of up to US$10 million to Banc Post, a small state-owned Romanian bank. The loan would be convertible into shares of the Bank upon privatization. The entire loan would be prepayable if Banc Post were not privatized within eighteen months of IFC making the loan. Banc Post was established in 1991 to take over the banking and payment transactions performed by the Romanian Postal System. Since its establishment --despite being constrained by its limited equity base -- the bank has developed a national network of more than 100 branches servicing both retail and corporate clients. As of end-June 1997, the Bank had about US$230 million equivalent in assets and US$57 million equivalent in equity.Environmental Category and Issues This is a category C project according to IFC’s environmental review procedure. In addition, Banc Post must attend IFC’s workshops on environmental management; for relevant operations, implement an environmental management system (policy, procedure, and designated staff to conduct reviews) to ensure that such operations comply with host country environmental requirements; and submit an annual environmental performance report briefly describing environmental aspects of relevant operations. Date SPI sent to InfoShop March 19, 1998“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384