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EBRD invests in Kiev International Bank
A new commercial bank has been established in Ukraine with the support of the European Bank for Reconstruction and Development (EBRD), which will invest ECU 1.75 million. Kiev International Bank (KIB), to be capitalised at ECU 5 million, will provide a full range of commercial banking and corporate finance services, focusing on long-term funding for medium sized private enterprises in Ukraine.
Pierre Mellinger, Co-Director of the EBRD’s Financial Institutions team, said: “By supporting the Kiev International Bank, the EBRD will play an active role in developing a strong financial infrastructure in Ukraine. KIB will introduce new techniques and experience into the market and stimulate competition.”
The EBRD will be a core equity investor in KIB, with 35 per cent of the bank’s capital, and will be represented on the Board. The proceeds of the investment will be used as bank capital.
Other shareholders include the Ukrainian Financial Group (35 per cent), Bank Ukraina (17 per cent) and Kredyt Bank of Poland (13 per cent). An application for a banking licence is being made which is expected to be issued shortly.
Management support is being provided by Rural Investment Advisory Services, a consultancy group affiliated to Rabobank (the third-largest bank in the Netherlands), which is being funded by the Dutch Government.
The equity investment in KIB brings the EBRD’s total amount of signed commitments to Ukraine to ECU 131.8 million.
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