• Financing is subordinated debt and will be listed on the Bucharest Stock Exchange
• The IFC investment aims to facilitate access to mortgage loans in Romania, while also contributing to mitigating and reducing the effects of climate change and supporting the country's banking sector
• Ranked fifth in the list of greenhouse gas (GHG) emissions among EU countries, Romania must take urgent measures to reduce its carbon footprint
• The partnership between IFC and Banca Transilvania means, starting from 2004, 14 investments and 3 consulting projects

IFC offers 100 million euros to Banca Transilvania, the largest bank in Romania, as part of a subordinated bond package worth 200 million euros, along with Asian Infrastructure Investment Bank (AIIB). The IFC investment aims to facilitate access to mortgage loans in Romania, while also contributing to mitigating and reducing the effects of climate change and supporting the country's banking sector.

This financing addresses the challenges arising from the old, inadequate, and energy-inefficient housing supply in the country. It will supplement housing financing options and improve living conditions by encouraging the provision of more energy-efficient but at the same time environmentally friendly housing.

The new financing facility supported by IFC helps us intensify our financing efforts in areas of interest for the transition towards a sustainable economy in Romania. Thus, directing the obtained funds towards green mortgage loans will reduce energy consumption and greenhouse gas emissions, while ensuring the improvement of living conditions – declared Ӧmer Tetik, CEO Transilvania Bank.

Located in fifth place in the ranking of greenhouse gas (GHG) emissions among EU countries and in 42nd place worldwide, Romania must take urgent measures to reduce its carbon footprint, to green its housing stock, and to improve air quality and energy efficiency. The investment from IFC will be mainly dedicated to mortgage financing, with at least 80% allocated to the financing of green mortgages.

Subordinated debt financing, which will be listed on the Bucharest Stock Exchange, complies with Basel III regulatory standards, as well as EU and national legislation in the field. By being qualified as Tier 2 capital, the hybrid instrument will contribute to increasing BT's resilience and to the development of the banking sector in Romania.

Private sector investments are essential for increasing access to financing for affordable housing. We aim to address the housing issue in Romania together with our long-term partner BT, while also helping the country achieve its climate change reduction goals by improving the energy efficiency of homes – said Rana Karadsheh, IFC regional director.

The partnership between IFC and Banca Transilvania has meant, starting from 2004, 14 investments and 3 consultancy projects.

Asian Infrastructure Investment Bank Policy:

The Asian Infrastructure Investment Bank Policy on the Mechanism for people affected by projects is available here for the stakeholders of Banca Transilvania. Concerns regarding social and environmental issues can be communicated through the indicated website.