Banca Transilvania has received EUR 40 million in funding from the European Bank for Reconstruction and Development (EBRD) to provide loans to households, homeowners’ associations and service providers for investments that will help reduce energy consumption.

Banca Transilvania is the first bank in Romania to extend EBRD-funded loans for energy efficiency in the residential sector.

Details:

• The loan is part of the Green Economy Financing Facility (GEFF) in Romania, a program worth approximately EUR 100 million, aimed at financing green-economy investments in Romania.
• GEFF will initially comprise EUR 50 million from funds provided by the EBRD, while the International Cooperation and Development Fund (TaiwanICDF), the fund responsible for Taipei China’s external development programs, has contributed USD 20 million to date.
• This facility is the first co-financing proposed by the EBRD in collaboration with TaiwanICDF in Romania and is part of the bank’s efforts to attract new institutional investors to the country.
• The program is also complemented by grant funding from donors such as the Global Environment Facility (GEF) and the EBRD Shareholder Special Fund to provide advisory and technical assistance to banks and end-beneficiaries.
• Romania is one of the countries with the highest energy consumption in Europe. The residential sector accounts for 36% of the country’s total energy consumption, the largest share of any sector, while the EU average is 24%.

Statements:

Matteo Patrone, EBRD Regional Director for Romania and Bulgaria: “Most residential buildings in Romania were constructed between 1960 and 1990, with poor thermal insulation. Improving energy efficiency is a priority, but access to financing for such investments remains limited. We are pleased to offer a new financial product that addresses this issue and are delighted to sign the first project with Banca Transilvania.”

Lucyna Stanczak-Wuczynska, EBRD Director for EU Financial Institutions: “The EBRD is pleased to join forces with its long-standing partner, Banca Transilvania, for a pioneering energy-efficiency financing in Romania’s residential sector. We are committed to demonstrating that this area has strong business potential and we look forward to many more partners joining the effort.”

Ambassador Weber V.B. Shih, Secretary General of TaiwanICDF: “We hope that this collaboration between TaiwanICDF and the EBRD under the GEFF in Romania, which focuses on energy efficiency in the residential sector, will lead to an increase in green investment, spurring the use of the best green technologies in Romania. This will also have a positive and sustainable impact on the environment. TaiwanICDF’s vision is partnership for progress, and we will continue to work with our partners toward sustainable development.”

Ömer Tetik, Chief Executive Officer of Banca Transilvania: “This is the third EBRD credit line received by our bank to support investments in energy-efficiency projects. The first two were dedicated to small and medium-sized enterprises, while this one, a first, is for retail customers. These partnerships benefit people, the environment and the economy, and for Banca Transilvania they offer a new opportunity to support the entrepreneurial spirit and the healthy, sustainable growth of Romania’s economy.”

About BT, the EBRD and TaiwanICDF:

• Banca Transilvania is the second-largest bank in Romania by total assets, and the EBRD has been its shareholder since 2001.
• The EBRD is the largest institutional investor in the country. The bank has so far invested over EUR 7.5 billion through nearly 400 projects.
• TaiwanICDF is dedicated to promoting socio-economic development, building human capital and fostering economic relations across a number of developing partner countries. The fund is headquartered in Taipei and is active worldwide.