Banca Transilvania, the second-biggest lender in Romania, aims to turn into a regional player by taking over the third-biggest bank in the Republic of Moldova.

Banca Transilvania announced its intention to buy a 39% initial stake in Victoriabank, Moldova’s third largest bank, in a report sent to the Bucharest Stock Exchange on Tuesday evening. It has requested the approval of the acquisition from the banking regulators of Romania and Moldova and relevant authorities.

This is the first time a foreign bank investor is entering the Moldovan market since 2007. As a result of the planned investment, Banca Transilvania and the EBRD will jointly hold a controlling stake in Victoriabank. In line with the Moldovan law, they will then offer to buy remaining shares.

The EBRD, a minority shareholder in Victoriabank, increased its stake to 27.5% last year in a move to restore effective corporate governance and attract a strong strategic investor to the lender.

“We want to replicate the BT business model and the success we have in Romania. Victoriabank is a solid bank, well positioned on Moldova’s banking market,” said Banca Transilvania Chairman Horia Ciorcila. “We see potential in the business lines in which Banca Transilvania has a solid expertise – SMEs, retail, micro companies – as well as in digital financial services,” he added.

Victoriabank has almost 30 years of activity, 540,000 clients, 1,400 employees, and close to 100 banking units in Moldova.

Banca Transilvania is the second-largest bank by total assets in Romania. It serves 2.2 million clients and has over 7,000 employees and 500 units.

EBRD currently holds some 8.6% of Banca Transilvania’s shares. The lender’s shareholders include several local institutional investors, such as NN Pensii, SIF Moldova, SIF Oltenia, as well as foreign institutional such as the International Finance Corporation (IFC). The bank’s founder and chairman of the board Horia Ciorcila also owns up to 5% of its shares.

Banca Transilvania has significantly increased its market share in Romania in recent years via organic growth and acquisitions. It went up to second place in the local banks’ ranking after taking over Volksbank Romania. The group is currently negotiating the takeover of Bancpost from Greek group EFG Eurobank, a transaction that would bring it very close to becoming the biggest bank in Romania, a position currently held by Erste’s BCR.

Banca Transilvania has been listed on the Bucharest Stock Exchange for over 20 years and currently has a market capitalization of over EUR 2 billion.

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editor@romania-insider.com