The International Financial Corporation (IFC) will provide an USD 15 million trade credit line to Romanian lender Banca Transvilvania, which will enable the bank to provide additional funds to micro, small, and medium enterprises to finance their international trade.
IFC’s Global Trade Finance Program has issued more than 12,000 guarantees totaling USD 19 billion to banks since its start in 2005.
“IFC is an important Banca Transilvania shareholder—and a strong supporter of our business strategy,” said Horia Ciorcila, Chairman of Banca Transilvania’s Board of Directors. “Its Global Trade Finance Program will support and strengthen Romanian companies and reinforce the Romanian entrepreneurial spirit.”
IFC has held a 3.54 percent stake in Banca Transilvania since 2009, when it converted a USD 20 million subordinated convertible bond into equity. IFC also previously extended four senior loans and one subordinated loan to the bank.
In the fiscal 2012, IFC provided USD 2.9 billion in guarantees to support trade in the world’s poorest countries, most of which supported small and medium enterprises. The program includes more than 260 partner banks in more than 90 emerging-market countries.
Banca Transilvania’s half-year net profit increased by 47 percent to EUR 40.9 million, compared to the same period last year, while the gross profit of EUR 44 million is 29 percent higher than in the first half of 2011.
(photo source: Romania-Insider.com)