The investment aims to increase access to residential mortgages in Romania while helping mitigate climate change and strengthen the country’s banking sector.
„This financing initiative addresses challenges stemming from the country’s outdated, inadequate, and energy-inefficient housing supply. It will expand housing finance options and improve living conditions by encouraging the supply of more efficient and environmentally friendly housing”, reads the bank’s BVB report.
Romania ranks fifth in in greenhouse gas emissions among EU countries and 42nd globally.
The investment from IFC will be primarily dedicated to residential mortgage financing, with 80 percent allocated to green mortgages.
“The new financing facility organized by IFC helps us intensify our financing efforts in areas of interest for the transition to a sustainable economy in Romania. Thus, directing the obtained funds towards energyefficient mortgages will decrease energy consumption and greenhouse gas emissions while ensuring improved housing conditions,“ said Ӧmer Tetik, CEO of Banca Transilvania.
The subordinated debt, to be listed on the Bucharest Stock Exchange, adheres to the regulatory frameworks of Basel III, as well as of the EU and Romania. By serving as Tier 2 capital, the hybrid capital instrument will help enhance BT’s resilience and bolster Romania’s banking sector.
(English version by Catalina Apostoiu)