Banca Romaneasca (Romanian Bank) has caught the eye of the European Bank for Reconstruction and Development (EBRD), as the international institution announced it would debate the proposition to buy up to 15% in it, voting rights included.
EBRD's announcement, which shows this project is due for debate by the Board of Directors on October 28, comes after the agreement signed by the National Bank of Greece (NBG) for buying 81.6% in Banca Romaneasca.
Actually, as soon as the transaction between NBG and the Romanian-American Enterprise Fund (RAEF) is concluded, NBG will transfer part of its shares to EBRD. Sources close to the deal say EBRD will invest some 5 to 6 million euros in Banca Romaneasca, as EBRD and NBG are partners in all the acquisitions in the Balkans.
"It is too early for me to comment on this issue. It is the shareholders' business so that they are the only ones that can provide details. At any rate, the authorities are expected to endorse the deal by which RAEF sold its 81.6% stake in Banca Romaneasca first," Petru Rares, Banca Romaneasca chairman, told Ziarul Financiar.
EBRD currently holds a number of interests in the Romanian banking system. Barring the 12.5% in the largest Romanian bank, BCR (Romanian Commercial Bank), EBRD also owns stakes of about 5% in BRD-Groupe Societe Generale, Banca Tiriac and Miro Bank, as well as 15% in Banca Transilvania. The financial market in Bucharest is expecting the conversion of a $10 million loan granted to Banc Post in 1998 soon.
The European financial institution intends, as hinted by the official announcement, to turn Banca Romaneasca into a modern and efficient institution, relying on its banking experience and on the co-operation with the Greek investor.
At the same time, EBRD's project pursues boosting competition on the retail banking market and on the small and medium-sized enterprise segment, as well as making it easier for that bank to access long-term financing sources.
The information published on its website shows the National Bank of Greece is planning to expand the number of Banca Romaneasca branches from the current 27 to 40.
"The bank will try to expand on every banking service segment, but will focus on retail, which has medium-term growth potential," the National Bank of Greece informs.
NBG already holds a securities firm in Romania - Eteba, an insurance company - Garanta and a banking branch - National Bank of Greece Romania.
The NBG Group currently operates in eight SE European and Eastern Mediterranean countries through three subsidiary banks, five companies and a banking branch network, totalling over 200 units and employing about 4,000 people. Its assets are worth 2.6bn euros.
The Romanian-American Enterprise Fund (RAEF) last Thursday announced it had concluded a deal with the National Bank of Greece for selling the entire stake it held in Banca Romaneasca (81.6%). Sources close to the deal say NBG paid approximately $40 million for it. oana.nuta@zf.ro
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