BRD Groupe Societe Generale and IFC, a member of the World Bank Group, have closed a landmark synthetic significant risk transfer (SRT) transaction that will free up capital for BRD to boost the financing of impactful sustainability-related projects in Romania.
Under the transaction, IFC will provide a risk guarantee on an up to €700 million BRD portfolio of small and medium enterprise (SME) and corporate loans. Capital freed up by the SRT will enable the bank to lend up to €315 million to fund climate-related initiatives and women-owned smaller businesses.
SRTs are a widely used capital management tool for banks. IFC has played a key role in their introduction in emerging markets, including Central and Eastern Europe. Capital resources freed up by such transactions can be reallocated toward financing projects with strong developmental impact.
“BRD is committed to building a sustainable economy in Romania and environmental, social and governance commitments are at the heart of our strategy. We have demonstrated this in recent years by delivering growing momentum in positive impact finance. We are delighted to partner with IFC on this new agreement, which will enable us to accelerate our expansion in this important area,” said Maria Rousseva, Chief Executive Officer of BRD Groupe Societe Generale.
This transaction is part of the agreement signed in early 2024 between Societe Generale group and IFC to strengthen collaboration between the two institutions to accelerate their support for sustainable finance projects. While Societe Generale group is already a user of SRTs redeploying capital to sustainability-related lending, this is a first time that BRD resorts to such an instrument.
Makhtar Diop, IFC’s Managing Director, said: “This transaction marks an important milestone in our longstanding partnership with Societe Generale, showcasing our shared commitment to developing innovative financing solutions. With this SRT—a first for both IFC and BRD in Romania—we are investing in the country’s future to accelerate sustainable and inclusive economic growth.”
The SRT is one of two key IFC deals aimed at catalyzing Romania’s green transition, boosting financial inclusion, and driving sustainable growth, announced during Diop’s first visit to the country this week.
BRD has a successful track record in sustainable finance, including investing more than €800 million in sustainable financing over the last three years, and organizing two climate change summits in Romania.
The information provided by KomuniK
West Group announced that it finalized the full acquisition of the iResidence residential project in northern Bucharest, ensuring that development continues without disruption and with strengthened financial backing. The project comprises 520 apartments with underground parking and storage facilities. Following the takeover, construction remains on schedule, with the first phase of 260 apartments already structurally […]
Bucharest's interim mayor, Stelian Bujduveanu, announced on Tuesday, August 19, the launch of a large-scale urban regeneration project around Gara de Nord, the capital's busiest railway station. The plan, developed in partnership with the Ministry of Transport and the District 1 City Hall, aims to transform the degraded transport hub into a modern intermodal node,
Save Romania Union (USR) has discussed with prime minister Ilie Bolojan (Liberal Party, PNL) about the organization of local elections in Bucharest in November, given his position as head of government and also as PNL president, sources told
The Israeli company Econergy, one of the most important investors in renewables in Romania, announced that it has officially connected a new 87 MW photovoltaic park located in Oradea to the Romanian electricity grid and announced plans for a 68 MW storage facility at the project site, according to
Romania’s courier industry recorded revenues of RON8.1bn ($1.78bn) in 2024, up 17% year on year, according to data from the SMARTreports platform powered by Bridge-to-Information, Ziarul Financiar reported. The sector added RON 1.1 billion (EUR 220 million) in revenues compared to 2023, marking one of its...
Consultations were held between the government, trade unions, financial markets regulator ASF, and the financial institutions involved, about the draft project for the disbursement of pensions under the pillars II and III. The consultations followed public protests to the draft law inked by ASF and promoted by the government, particularly regarding the ban on complete […]
