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EBRD invests in Ukraine International Airlines
The European Bank for Reconstruction and Development (EBRD) is taking a 9.93 per cent stake in Ukraine International Airlines (UIA) totalling US$ 5.4 million (€6.5 million). The investment will help the Ukrainian airline to meet market demand and to offer a credible alternative to western European airlines. "The EBRD’s decision to participate in this deal comes at a time when air traffic between western Europe and Ukraine is growing and there are real signs of economic growth in the country," said Andrew Seton, Team Director for Ukraine at the EBRD. Mr Seton added: "We are grateful to the project’s sponsors, Austrian Airlines and Swissair, without whose support this transaction would not have been possible."
Austrian Airlines and SAir Group have held a combined total of over 20 per cent of UIA since 1996. The other foreign investor is debis AirFinance Ireland plc (formerly GPA Group plc).
At the signing in Vienna today, Dick Creagh, the Deputy President of UIA, said: "We are very pleased the EBRD has agreed to invest. The EBRD investment is an important step towards the further privatisation of the company as approved by its main shareholder, the State Property Fund of Ukraine."
UIA is a closed joint-stock company created in 1992, shortly after Ukrainian independence, to provide high-quality passenger and cargo services between Ukraine and western Europe. The airline operates a modern fleet of Boeing 737 aircraft.
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