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October 29, 2020
BUSINESS

EBRD provides 15 million euros to Banca Transilvania for on-lending to SMEs

The European Bank for Reconstruction and Development (EBRD) provides 15 million euros of new financing to Romania’s Banca Transilvania for on-lending to small and medium-sized enterprises (SMEs) investing in energy efficiency and small-scale renewable-energy projects of up to 1 million euros, EBRD reported in a press release on Tuesday.
The loan comes under the EBRD’s Romania SME Sustainable Energy Financing Facility (RoSEFF), a key instrument for promoting more efficient use of energy as a means to cut bills and boost the competitiveness of SMEs. A total of 60 million euros has been previously provided to key Romanian banks participating in the programme.
The EBRD’s first energy efficiency loan of 10 million euros to Banca Transilvania in 2012 has already been used. It enabled 34 Romanian SMEs to invest in improved energy efficiency.
‘Energy savings over the lifetime of these investments are the equivalent of more than a year of all household electricity consumption in the city of Bucharest,’ EBRD Fist Vice President Phil Bennett said Tuesday while signing the transaction in Bucharest.
In his turn, Omer Tetik, the CEO of Banca Transilvania said the agreement with the EBRD today brings multiple benefits: for the environment in terms of lower carbon emissions; for the economy, by means of improved industrial competitiveness while the carbon emission reductions achieved.
He added that the carbon emission reductions achieved – almost 890,000 tonnes – is the equivalent of taking almost 280,000 cars off the road for one year.
The EBRD has so far granted 60 million euros to various Romanian banks for the same destination.
Banca Transilvania is the third-largest bank by assets in Romania and is listed on the Bucharest Stock Exchange. The EBRD holds a 15 per cent stake in the bank and is its largest shareholder.
The EBRD is the leading institutional investor in Romania. To date, the Bank has invested over 6.9 billion euros across 366 projects in the country. It has also mobilised over 14 billion euros for these ventures from other sources of financing.

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