International Finance Corporation's exposure to Romania reaches USD 670 million

Current investments of the International Finance Corporation (IFC) in Romania amount to USD 670 million, according to the institution’s local representatives. “Each year we make new investments worth about USD 150 million, but we also have repayments on older investments so the balance maintains close to USD 670 million,” said Ana Maria Mihaescu, the head of IFC Romania. IFC announced on Monday, May 12, that it granted a USD 40 million subordinated loan to Banca Transilvania, to help the third largest Romanian bank by assets expand its small and medium enterprises loan portfolio. Banca Transilvania is IFC’s largest client in Romania,as well as one of its investments: FC also holds a 3.6 percent stake in the bank. IFC also subscribed corporate bonds issued by Raiffeisen Bank worth RON 90 million (EUR 20 million), last week. Raiffeisen Bank issued bonds worth a total of RON 500 million (EUR 112 million), in local currency, which will be traded on the Bucharest Stock Exchange. “In addition to financing the Romanian banking sector we also want to support the development of the local capital market as a financing alternative for the economy,” Mihaescu explained. Romania became an IFC member in 1990, and the institution has invested a total of USD 2.2 billion in the country since then. In 2013, IFC’s total investment portfolio climbed to an all-time high of nearly USD 25 billion. Andrei Chirileasa, andrei@romania-insider.com (photo: Romania-insider.com)