EBRD invests EUR 550 M in Romania in 2017, close to the 7-year high. New investments are on the pipe

The European Bank for Reconstruction and Development (EBRD) invested over half a billion euros in the Romanian economy in 2017, a press release informs. The international financial institution supported 29 projects with EUR 546 million of debt and equity investments last year. Of this financing, 93 percent was provided to the private sector. 

“I am very pleased that we could support such a high number of important projects in 2017. We hope to continue investing strongly in 2018 and will maintain focus on the private sector. We are also planning several investments in municipal infrastructure and stand ready to support the authorities in advancing infrastructure initiatives and restructuring state-owned enterprises,” Matteo Patrone, EBRD Director for Romania and Bulgaria, said.

Last year’s investment was close to the seven-year high mark of EUR 612 million, provided in 2012. Equity investment reached an all-time record of EUR 122 million in nine deals.

The 2017 results bring total EBRD investment in Romania to EUR 7.8 billion, and the number of projects in the country to 415 at the end of the year.

In Romania, the bank focuses on promoting access to finance and expanding products in the financial sector, reducing regional disparities by developing infrastructure, and improving competitiveness in the corporate sector through improved governance and management practices, as well as on restructuring state-owned enterprises.

In 2017, the EBRD financed greenfield investments such as a recycling facility for industrial oil waste and a new plant for soft alloys. The bank also financed the expansion of a local pharmaceutical retail chain and a real estate development for logistics in the outskirts of Bucharest. Equity investments include a local agriculture holding, a popular supermarket chain, and a company targeting oil & gas exploration in the Black Sea. The international lender also financed municipal infrastructure projects such as new buses for Sibiu, Brasov and Constanta.

The EBRD was also very active in the capital markets, backing landmark bond issues, supporting alternative methods of financing, such as leasing, providing business advice and financing to small and medium-sized enterprises (SMEs).

2017 also saw two partner banks joining the new Green Economy Financing Facility (GEFF) for Romania, which blends EBRD money with concessional funding from the International Cooperation and Development Fund (TaiwanICDF) for energy-saving investments in residential buildings. Funding from GEFF was provided to Banca Transilvania and UniCredit, which are now on-lending the funds to households and housing associations.