EBRD reduces stake in Romania’s Banca Transilvania

The European Bank for Reconstruction and Development (EBRD) reduced its equity stake in Banca Transilvania (TLV), the third largest bank in Romania, by selling 86.76 million shares (2.85% stake) on Friday, November 13, via an accelerated bookbuild placement on the Bucharest Stock Exchange (BVB). EBRD didn’t say how much if got for the shares, but considering the current market price, the transaction was close to EUR 50 million. The transaction was launched on the Bucharest Stock Exchange on 12 November 2015 after the market’s close. The sale attracted strong interest from a broad mix of domestic and international institutional investors. Wood & Co acted as sole book-runner of the offering. Following the sale, the EBRD will remain Banca Transilvania’s largest shareholder, holding 11.5% of shares. EBRD has been the largest shareholder in Banca Transilvania since 2001 when it acquired a 15% stake to strengthen the bank’s capital base and support the expansion of its activities and loan portfolio. Since then, Banca Transilvania has grown into the third-largest bank by assets in Romania. “We are very pleased with Banca Transilvania achievements over the past few years, notably its strong position as an innovative and fast-growing locally-owned bank in Romania. The bank’s resilient and adaptable business model, its proven ability to face headwinds with speed, openness and transparency, its committed and experienced management and all-important support from the stakeholders make Banca Transilvania a strong and resilient bank with a proven track record,” said Nick Tesseyman, EBRD Managing Director for Financial Institutions. “As a continuing shareholder, the EBRD remains confident about Banca Transilvania future prospects and its capacity to further strengthen its profitability and market position. By reducing our stake we are helping to increase the liquidity of Banca Transilvania stock while we continue to support the bank’s growth strategy,” he added. The EBRD is one of the biggest institutional investors in Romania with almost EUR 1.5 billion invested in 75 projects over the previous country strategy period. Romanian Banca Transilvania sees slightly lower profit Romanian Banca Transilvania’s president reduces stake in the bank Romania’s Central Bank approves Banca Transilvania–Volksbank merger editor@romania-insider.com