Export-Import Bank of Romania (EximBank) has signed an agreement with National Bank of Greece (NBG) to acquire 99.28% stake in Banca Românească (BROM).

National Bank of Greece

Image: Exim Bank’s office. Photo: Courtesy of EXIMBANK S.A.

Following the completion of the deal, EximBank will foray into the domestic retail banking market and will become a universal commercial bank. As a result of the deal, EximBank’s market share is said to increase by 3%, placing it at one of the top 10 largest tenders in the country.

The Minister of Public Finance Eugen Teodorovici said: “As the majority shareholder of EximBank, The Ministry of Public Finance has always believed in the outstanding potential of this endeavour, which accomplishes the Romanian authorities’ ongoing concern to strengthen the presence, the role and the systemic impact of state-controlled banks on the domestic market.

“We are confident that the new entity will play a key role in supporting the country’s economic growth through the financial support that will be offered to all relevant market segments, whether they be private individuals or businesses.”

The deal is subject to approval from the National Bank of Romania and the Romanian Competition Council.

Furthermore, National Bank of Greece believes that the deal is expected to increase its CET1 ratio by 26 bps and will also strengthen its liquidity position by €314m (£281m), after taking account the repayment of the intra-group debt.

EximBank executive president Traian Halalai said: “I am delighted to announce this transaction that leads to the creation of a benchmark Romanian bank that will capitalise on both BROM’s experience in the retail banking segment and EximBank’s time proven ability to support the domestic business environment.

“Since its establishing 27 years ago, EximBank has constantly re-shaped and modernized in order to keep pace with the banking system evolution and the clients’ up graded demands and this step clearly represents a major achievement in our bank’s history.”

Recently, EximBank stated it will participate in creating an on-line platform that will allow in presenting large-scale investments projects in the Balkan and Central Europe region along with identifying financing resources, under the the Bulgarian Development Bank (BDB) initiative.