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EBRD and IMB Group continue support to consumer finance in Ukraine
$20 million loan to International Mortgage Bank
The EBRD is providing a $20 million loan to International Mortgage Bank (IMB), a specialised mortgage and consumer finance institution in Ukraine. The loan will provide medium-term funding to assist the development of the bank’s consumer finance business.
With annual increase of nearly 100 per cent and an overall volume of approximately $6.8bn, consumer lending is one of the newest and the fastest growing segments of the Ukrainian financial sector. Therefore, it is very important for EBRD to support professional specialised consumer finance institutions in Ukraine in order to increase the range and affordability of products they offer to customers and promote best international lending practices, in such areas as risk management and information disclosure. The new loan facility will reinforce EBRD’s efforts at increasing the standards of operation of consumer finance sector in Ukraine.
According to EBRD Ukraine Director Kamen Zahariev, the Bank’s long-term strategy is to create a strong and transparent legal framework in consumer lending which, coupled with a substantial portfolio, will eventually allow the development of capital markets in Ukraine. “We are convinced that our financing to IMB, which has strong management with excellent experience in the industry, will help them to secure leading positions in this sector,” he added.
Todd Esposito, IMB Group CFO and Management Board Member of IMB added:”Working with an organization such as EBRD adds credibility to IMB Group’s focus on retail bank and consumer lending in Ukraine. IMB is expanding its presence throughout Ukraine in 2007 and 2008 and will use the funds toward growth of its sales finance portfolio.”
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of the end November 2007 it had committed over €3.12 billion through more than 156 projects.
*About IMB Group
IMB Group Public Ltd. is Ukraine’s leading pure-play consumer lending platform, offering mortgages, POS loans, personal loans, and deposits. IMB Group owns 100% stakes in International Mortgage Bank (IMB) and Family Credit, a consumer lending intermediary. IMB Group is backed by Horizon Capital, Ukraine’s leading private equity fund manager, and leading global private equity firms Warburg Pincus with over $20bn under management, and East Capital with over $5bn under management.
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