|
EBRD provides $50 million loan to UkrSibbank
Ukraine’s third largest bank to open long-term SME lending facility
JSCIB “UkrSibbank”, Ukraine’s third largest financial institution and part of BNP Paribas Group, has attracted a $50 million credit line from the European Bank for Reconstruction and Development to develop its SME long-term lending activities.
This facility will be used for lending to Ukrainian small businesses for supporting their various projects from capital expansion to financing of foreign-economic activity.
The EBRD loan will help JSCIB “UkrSibbank” extend long-term loans to small and medium businesses with the objective of increasing its share of the SME loan portfolio as well as being able to accommodate their investment and capital needs. JSCIB “UkrSibbank”has an extensive branch network of over 1,000 banking units and points of sale across Ukraine and is able to reach SMEs in all of the regions of Ukraine.
The EU is providing technical assistance for the project, which will fund specialist advice in small business lending activities focusing primarily on market strategy, increasing the existing product range offered to SMEs and the training of loan officers for JSCIB “UkrSibbank”. With the help of the technical assistance and the long term funding received by the EBRD, UkrSibbank expects to increase its market share in SME lending signficantly.
Oleksandr Adarich, Chairman of the Board of JSCIB “UkrSibbank”, noted: “Increased financing to the SME sector in Ukraine will help meet the growing demand for investment finance from local businesses and SME clients of JSCIB “UkrSibbank”. Improved access to finance for SME sector, which traditionally have had limited access to long-term funding, is expected to have a positive effect on the overall economic situation especially with funds being directed to the regions”.
Kamen Zahariev, EBRD Country Director for Ukraine, said the EBRD financing will help JSCIB “UkrSibbank” enhance its presence in the SME market and also reach out to small businesses outside Kiev. A vibrant SME sector is a prerequisite for a strong economy. In order to grow, these companies need long term funds, and the EBRD welcomes JSCIB “UkrSibbank” strategy of increasing its focus on the SME sector.
JSCIB “UkrSibbank” (www.ukrsibbank.com) was registered onJune 18, 1990. The Bank has a complete NBU license on banking № 75 of December 24, 2001. As of 01.02.2008: total assets – UAH 37.3bn, capital – UAH 4.09bn, loan and investment portfolio makes up UAH 32.8bn, corporate customers’ funds – UAH 4.5bn, individuals’ funds – UAH 6.6bn. Regional network currently amounts to more than 1 000 branches and outlets throughoutUkraine. 69 thousand ofUkraine’s businesses are customers of JSCIB «UkrSibbank», the amount of individuals’ accounts exceeds 3.3 mln. In April 2006,BNPParibas purchased 51% of shares in JSCIB “UkrSibbank”.
BNP Paribas (www.bnpparibas.com) is a European leader of international banking and financial market and one of the four largest banks in the world according to the Standard & Poor’s Rating Agency. The Group is operating in more than 85 countries, and its headcount exceeds 161 000 employees, including 125 000 of them working inEurope. The Group holds top positions by developing key directions: corporate and investment banking, asset management and retail banking. The Group is represented inEuropein all key business streamlines, and main internal markets for retail banking services areItalyandFrance. BNP Paribas occupies leading positions in theUSAas well as inAsiaand emerging markets.
The European Bank for Reconstruction and Development is the biggest financial investor inUkraine. As of January 2008 it had committed over €3.2 billion through more than 161 projects.
|
