Ukraine Subordinated Credit Facility to JSCB OTP Bank

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 9426

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 9426

Status Complete

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

30 Nov 1999

Disclosure date

24 Jan 2000

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

US$ 10 million subordinated facility to Raiffeisen Bank Ukraine will strengthen capitalisation of the Ukrainian bank and allow it to extend its lending operations without exposure to foreign exchange risk.

The project aims to:

increase supplementary (Tier II) 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

Raiffeisen Bank Ukraine (RBU) is a 100 per cent owned subsidiary of Raiffeisen Group (Vienna). The bank is initially concentrating on short-term structured trade finance and payment services for its international and regional clientele. The bank is also strengthening its presence by acquiring wider local clientele and increasing the proportion of finance to premier local businesses. As part of the extensive regional network of the parent bank, RBU is positioned to benefit from the growth in interregional trade as many central European companies start to resume old links with Ukraine disrupted over the past few years.

EBRD Finance

The loan will be subordinated to other creditors of RBU and will have a maturity of seven years. In accordance with the Basle Accord, part of the loan (around US$ 5 million) will be qualified as Tier 2 capital of RBU. The remaining part will be disbursed against credit applications to finance sub-projects selected in accordance with standard EBRD criteria.

Project Cost

US$ 10 million (EUR 9.9 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.

Transition impact

ETI Score:35

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

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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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