Forum Bank - Subordinated Loan - Ukraine

Location:

Ukraine

Project number:

40151

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

14 Jul 2009

Status:

Completed

PSD disclosed:

29 May 2009

Project Description

The EBRD is considering providing a Tier II capital qualifying as subordinated loan in the amount of USD80 million to support Bank Forum’s capitalisation.
The mix of Tier I (provided by the shareholders) and Tier II capital (support from the EBRD) will help to ensure that the bank has the capital cushion to weather the economic downturn in Ukraine.

Transition Impact

The Project will support a significant financial institution in the country with a sizeable client base. More broadly, it will help in maintaining a functioning banking sector and support a level of financial intermediation and continued lending to the real economy, while also contributing to improve overall market confidence.

The Client

Bank Forum is the 11th largest bank in Ukraine controlled by Commerzbank AG, the second largest bank in Germany.

EBRD Finance

A ten-year Tier II subordinated loan in the amount of USD 80 million.

Project Cost

The total operation amount is USD 80 million.

Environmental Impact

Forum will conduct its business in accordance with EBRD’s Environmental Performance Requirement (“PR”) 2 and apply PR 9 when making local loans which will be required to comply with applicable national environmental, health and safety and labour requirements. Forum should adhere to the EBRD's Environmental and Social Exclusion and Referral Lists, and submit annual environmental and social reports to the Bank.

Technical Cooperation

Forum Bank has received institution building technical assistance for the implementation of Mortgage lending from the Canadian International Development Agency under the CIDA - Ukraine SME Cooperation Fund. Further technical assistance for is not currently envisaged.

Company Contact

Mr. Oleksii Pavlov
Head of Division
Strategic Investors Relationship
JSCB FORUM
B.Khmelnytskoho Str., 17/52
01030 Kyiv
Ukraine
Tel. +38 044 205 3559
apavlov@forum.com.ua

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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