Kiev International Bank

Project Description

EUR 1.75 million investment to maintain the Bank’s 35 per cent participation in KIB’s capital.

The investment will enable KIB to maintain the full set of banking licences. The strategic goal of KIB is to establish itself in Ukraine as a leading foreign-owned bank specialising in food and agribusiness sectors and providing a full range of international banking and corporate finance services.

The Bank’s investment in KIB will facilitate improvement in the level of financial services provided in Ukraine, stimulate competition within the developing Ukrainian banking sector, and provide trade finance and payment services as well as facilitate foreign investments in the country’s agribusiness sector.

 

Transition Impact

Despite the difficult business environment, an active private sector is emerging in Ukrainian agriculture. The Bank's general objective is to use strategically selected investment financing to support the development of the private sector in agriculture.

KIB’s main objective is to become a leading private bank in Ukraine, providing a full set of banking services to the country’s agro-industry. More specifically, KIB’s strategy is to provide well-structured financing to private agribusiness companies, facilitate foreign investment in the sector, and support the development of leasing operations specialising in agriculture.

The capital increase will enable KIB to maintain the full set of banking licences and, consequently, preserve and develop the original transition impact of the Bank’s role in KIB.

The Client

Kiev International Bank (KIB) is a recently established and fully licensed, Ukrainian bank, set to become fully operational in 1999. After a number of changes in the ownership structure, KIB is now majority owned by Rabobank Nederland and its affiliate Rabobank International.

EBRD Finance

In order to comply with the capital requirements to banks majority owned by foreign shareholders, KIB has to increase its capital to EUR 10 million (from EUR 5 million). KIB will issue 1,000 new ordinary shares, to be proportionally subscribed by the EBRD and Rabobank.

The EBRD will subscribe to 350 new shares, thus maintaining its 35 per cent participation in the capital of the bank.

Project Cost

EUR 1.75 million

Environmental Impact

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

Technical Cooperation

None

 

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