MegaBank - Senior Loan

Location:

Ukraine

Project number:

40176

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

16 Jun 2009

Status:

Completed

PSD disclosed:

26 May 2009

Project Description

The EBRD is considering offering up to €20 million in equity investment and long-term senior loan to Ukrainian bank MegaBank plc in order to strengthen the bank’s capital and liquidity positions in the current difficult economic environment in Ukraine.

The proposed financing package will be used to support MegaBank’s capital and liquidity positions while the turbulence in the Ukrainian banking sector continues. Once the general economic environment and banking sector in Ukraine have stabilised the financing package proceeds will be used to revive MegaBank’s SME lending business.

Transition Impact

The project is in line with the transition impact objectives of the EBRD to strengthen capital base of local banks and to strengthen competition in the banking sector in general. The project also aims to strengthen capitalisation and promote stability in the banking system and lending continuity.

The project also aims to improve risk management knowledge and skills of MegaBank through a technical assistance programme.

The Client

MegaBank is a prominent regional Ukrainian bank with headquarters in Kharkiv. MegaBank has a well-developed branch network with presence in all administrative regions of Ukraine.

MegaBank’s franchise is particularly strong in the Eastern Ukraine, where it has a leading market position among the local banks.

EBRD Finance

A direct equity investment and a long-term senior loan.

Project Cost

Up to €20 million.

Environmental Impact

Screened FI, under the EBRD’s Environmental and Social Policy 2008. Megabank, an existing client of the EBRD's, will need to update its existing environmental and social procedures and management systems to reflect PRs 2 and 9, and apply these across its lending and investment portfolio. Monitoring will consist of a review of Annual Environmental Reports prepared Megabank and submitted to the EBRD for approval.

Technical Cooperation

It is envisaged that a technical assistance programme will be set up to complement the proposed financial support of MegaBank with an expert advice aiming to enhance MegaBank’s operating proficiency in the risk management area.

Company Contact

Vyacheslav Ryuitn
Deputy Chairman of the Management Board
MegaBank
30, Artyoma Street, Kharkiv 61002, Ukraineа
Phone: +380 57 714 06 63,
Fax: +380 57 703 21 43
E-mail: ryt@megabank.net

 

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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