Project description
and objectives:
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A US$ 20 million programme for the provision of equity and convertible debt financing to selected private sector financial institutions in Ukraine.
The objective of this operation is to strengthen the capital base of selected client banks by a combination of equity and convertible debt financing. This will promote enhanced institutional development, adherence to good standards of corporate governance and the financial discipline of debt covenant requirements.
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Sub-projects:
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- Kredo Bank Ukraine - Multi Bank Equity
- Ukraine Multi Bank Equity Finance - FUIB (Share Purchase)
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Transition impact:
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The project will promote efficient and profitable financial sector institutions, thereby supporting the efficiency of markets, the development of the financial sector and better services for local and foreign investors in Ukraine. Working with local banks also places competitive pressures on other institutions, which improves the quality of competitors' services. The project will expand the availability of finance for private companies and increase the range of financial institutions, services and instruments across the country. The operation should have a strong demonstration effect because of the scarcity of foreign investment in the Ukrainian financial sector.
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The client:
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There is no single client. Client banks joining the programme will be located in Ukraine and will be suitably qualified private sector financial institutions that can demonstrate a need for capital strengthening, together with a satisfactory level of creditworthiness and capable management teams. The first bank expected to be accredited to this framework will be L'viv based West Ukrainian Commercial Bank (WUCB).
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EBRD finance:
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In general, the basic terms and conditions of framework operations will consist of equity injections into client banks generally not exceeding about 20 per cent of the enlarged share capital bases of such banks. In some cases equity investments may be accompanied by convertible debt facilities. Where possible, a strategic investor will be invited alongside EBRD, with the combined stakes not intended to exceed 50 per cent of the share capital of investee banks.
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Total project cost:
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US$ 20 million (ECU 16.4 million) for the programme.
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Environmental impact:
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The environmental effect of the framework will depend on the end use of EBRD proceeds by customers of the participating banks. Use of proceeds (including equity funds) will be restricted by legal covenant to environmentally benign goods and commodities. As part of the initiative to enhance good corporate governance, environmental policy will be respected by emphasising to participating banks the risks of financing dangerous or polluting products. Participating banks will implement the EBRD's environmental procedures and report annually.
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Technical
cooperation:
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It is anticipated that technical cooperation (TC) assistance will be provided in most operations under this framework. TC programmes will be structured in a focused and rigorous manner in order to deliver immediate benefits in key areas such as information technology/management information systems, branch network control, asset/liability management, operational procedures and credit/lending systems.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Viktor Marchenko, Operation Leader: marchenv@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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