Kredo Bank Capital Increase

Location:

Ukraine

Project number:

37006

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

03 May 2006

Status:

Completed

PSD disclosed:

31 Mar 2006

Project Description

The proposed project will provide the capital increase of up to USD 4.4 million (UAH 22 million) in Kredobank under the framework of Multi Bank Equity Financing for Ukrainian Banks. The original transaction was approved as a sub-project at the time of the approval for the framework (PSD released 04 August 1997 and updated on 25 March 2003).

The total capital increase of up to USD 15 million (EBRD portion: up to USD 4.4 million) will strengthen Kredobank’s capital base allowing further growth of the bank’s business and compliance with NBU regulations.

Transition Impact

The project will provide Kredobank with Tier 1 capital and financial resources needed for implementation of the medium-term strategy of Kredobank to develop core banking business and in particular lending to private sector SME clients and retail banking. Via Kredobank the EBRD aims to foster competition and financial intermediation in the Ukrainian banking sector.

The Client

Kredobank (“the bank”) is a leading universal bank in Western Ukraine, with headquarters in Lviv. The bank is owned by PKO BP, the largest Polish bank (66.65%) and the EBRD (28.25%).

EBRD Finance

Equity investment under Multi-Bank Equity Financing Facility in Ukraine of up to USD 4.4 million (EUR 3.6 million) by way of subscription to newly issued ordinary shares of Kredobank as part of a capital increase.

Project Cost

USD 4.4 million (UAH 22 million).

Environmental Impact

Kredobank is managing environment-related reputation and financial risks through the implementation of the EBRD's environmental requirements within its existing operations. Kredobank will continue to comply with the EBRD’s Environmental Procedures for Local Banks which requires adherence to the Environmental Exclusion and Referral List and compliance at a minimum, with all applicable national regulations and standards for environment, health and safety, labour and public information/consultation requirements. Kredobank will submit annual environmental reports to the EBRD.

Technical Cooperation

None.

Company Contact

Olga Lesyk

Email: management.board@wucb.lviv.net

Website: http://www.wucb.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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.