Banca Tiriac

completed

The proposed transaction is to invest up to $20 million (or Euro equivalent) in form of a senior loan to support the growth of Banca Comerciala “Ion Tiriac” S.A. (Banca Tiriac, BT or the Bank), the first private bank in Romania founded in 1991, a medium-sized, well-capitalized bank, headquartered in Bucharest, Romania. IFC’s loan is intended to help BT to meet demand for medium term financing from its SME and corporate clients in Romania. With EU accession for Romania projected to happen in 2007, Romanian corporates and SME’s will need to upgrade their environmental and quality requirements to meet standards and remain competitive in a larger EU market. IFC proposed loan is intended to partially meet this demand by providing medium term resources to the Bank to match fund their corporate loans. In addition to the senior loan, IFC will consider a subordinated loan of up to $7.5 million (or Euro equivalent), that will qualify as Tier II capital as per National Bank of Romania guidelines. The subordinated loan is intended to increase the Bank’s Capital Adequacy Ratio in line with its projected growth in risk assets and the expansion of branch network. Additional benefits will include in reducing the Bank’s maturity mismatch on its balance sheet and increase the amount available for lending under the single obligor limit.