Kredo Bank Capital Increase

Location:

Ukraine

Project number:

37006

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval 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

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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