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:

Complete

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)

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Text of the PIP

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