Banca Transilvania, EIB in 402 mln euro synthetic securitisation deal

The deal includes Banca Transilvania’s pledge to provide new financing of over 2.64 billion lei to small and medium-sized enterprises (SMEs) and mid-caps over three years, the EIB said in a press release on Thursday.

The new financing will focus on sustainability, with at least 20% being allocated to projects aligned with climate action and environmental sustainability.

Through synthetic securitisation, the EIF is providing protection on a mezzanine tranche worth more than 324 million lei, counter-guaranteed by the EIB. Additionally, the EIF is offering protection on a senior tranche worth over 1.67 billion lei, with 50% also counter-guaranteed by the EIB. The structure is derived from a portfolio of micro, SME (MSME) and corporate loans with an outstanding balance exceeding RON 2 billion.

"I am glad to see our collaboration with the EIB Group continue with this new project where we accelerate the access to finance for local SMEs, which are one of the pillars of the Romanian economy,” Banca Transilvania CEO, Omer Tetik, said.

The transaction is the Romanian lender’s first securitisation deal and the first capital relief transaction between Banca Transilvania and EIB Group.

On Thursday, the European Bank for Reconstruction and Development (EBRD) said it reduced its stake in Banca Transilvania by 1.7 percentage points to 5.2% after selling 13.7 million shares.

Banca Transilvania shares traded 2.06% higher at 32.2 lei as of 1215 CET on June 28 on the Bucharest Stock Exchange.

(1 euro=4.9771 lei)