SUBORDINATED LOAN TO JSCB OTP BANK, UKRAINE

Location:

Ukraine

Project number:

27499

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

17 Dec 2002

Status:

Completed

PSD disclosed:

08 Nov 2002

Project Description

Proposed US$ 5 million subordinated debt facility to Raiffeisenbank Ukraine (RBU).
The project aims to:
  • increase supplementary (Tier 2) capital of RBU through subordination in order to maintain capital adequacy requirements;
  • support further private sector credit operations and finance anticipated loan growth; and
  • improve the range of products and services offered to the clients in order to expand the deposit base of the bank.

Transition Impact

By implementing the facility, the EBRD will enhance the supply of much-needed finance to the local private sector. A secondary benefit is that it will increase competitiveness in the country’s banking system.

The Client

Raiffeisenbank Ukraine is a 100%-owned subsidiary of Raiffeisen Zentralbank (RZB), Austria. Since the start of its operations in 1999 RBU has developed into one of the top ten commercial banks in Ukraine focusing on provision of trade finance facilities and investment loans to local private sector. The local bank is supported by RZB, Vienna, which is one of the major investors in the region.

EBRD Finance

The EBRD will provide US$ 5 million (€5.1 million) subordinated loan to Raiffeisenbank Ukraine. The subordinated debt will qualify as Tier 2 capital thus contributing to an increase in the total capitalisation of the Ukrainian bank.

Project Cost

US$ 5 million (€5.1 million)

Environmental Impact

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

Technical Cooperation

None.

Company Contact

 

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.