Romania’s Banca Transilvania reportedly in talks for record EUR 400 mln financing for Pavǎl Holding

Romania’s leading financial group, Banca Transilvania, is in talks with Pavǎl Holding to finance the latter in taking over the local operations of the French retailer Carrefour – a deal estimated at EUR 823 million – according to Ziarul Financiar. This would be a milestone deal for the Romanian banking sector, after the large companies have typically relied on foreign banks for large-scale financing.

This loan is considered one of the largest corporate financings on the Romanian market, especially since Banca Transilvania will grant this loan from its own balance sheet.

Banca Transilvania is the largest bank in Romania and now has the capacity to discuss and finance on its own large-scale mergers and acquisitions transactions, a market that was generally reserved for banks with foreign capital.

Pavăl Holding is discussing with several banks the financing of the Carrefour acquisition, according to the cited sources.

Banca Transilvania has been one of the financing banks of Dedeman and the Pavăl Holding group for more than a decade.

After several months of negotiations, in February, the French group Carrefour, present in Romania since the early 2000s, announced the signing of an agreement with the Pavăl Holding group for the sale of operations on the Romanian market for EUR 823 million.

(Photo source: Bancatransilvania.ro)