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.
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.
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.
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.
US$ 5 million (€5.1 million)
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.
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Text of the PIP