SUBORDINATED LOAN TO JSCB OTP BANK, UKRAINE

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 27499

Status Complete

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 27499

Status Complete

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

17 Dec 2002

Disclosure date

08 Nov 2002

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Proposed US$ 5 million subordinated debt facility to Raiffeisenbank Ukraine (RBU).

The project aims to:

increase supplementary (Tier 2) capital of RBU through subordination in order to maintain capital adequacy requirements;
support further private sector credit operations and finance anticipated loan growth; and
improve the range of products and services offered to the clients in order to expand the deposit base of the bank.

Transition Impact

By implementing the facility, the EBRD will enhance the supply of much-needed finance to the local private sector. A secondary benefit is that it will increase competitiveness in the country’s banking system.

The Client

Raiffeisenbank Ukraine is a 100%-owned subsidiary of Raiffeisen Zentralbank (RZB), Austria. Since the start of its operations in 1999 RBU has developed into one of the top ten commercial banks in Ukraine focusing on provision of trade finance facilities and investment loans to local private sector. The local bank is supported by RZB, Vienna, which is one of the major investors in the region.

EBRD Finance

The EBRD will provide US$ 5 million (€5.1 million) subordinated loan to Raiffeisenbank Ukraine. The subordinated debt will qualify as Tier 2 capital thus contributing to an increase in the total capitalisation of the Ukrainian bank.

Project Cost

US$ 5 million (€5.1 million)

Environmental Impact

RBU will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, RBU will require its borrowers to comply, at a minimum, with national/local health, safety, environmental and public consultation requirements.

Technical Cooperation

None.

Company Contact

Transition impact

ETI Score:40

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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