UKRAINE: EBRD PLANS $250 MILLION LOAN TO UKREXIMBANK 
Largest transaction to date in Ukrainian banking sector promotes lending to real economy

EBRD, London/Kiev, Saturday, 16 May 2009

KIEV - The European Bank for Reconstruction and Development (EBRD) is planning its largest-ever single investment in Ukraine, a $250 million subordinated loan to Ukreximbank, to support the continued funding of the Ukrainian real economy by one of the country’s leading financial institutions. The project is expected to be finalised early next week.

The 10-year loan Tier II capital loan will boost Ukreximbank’s capital base and support its continued lending to enterprises in Ukraine. The project is an integral part of EBRD’s response to the financial crisis in Ukraine, focussing on participation in the recapitalisation of viable and systemically important banks in the country.

Part of the loan proceeds, up to $50 million, will be used to finance energy efficiency projects. It is also envisaged that at least another $50 million will be allocated to export-oriented Ukrainian companies.
According to Andre Kuusvek, the EBRD Director for Ukraine: “The project will support one of the most important banks in the country and an institution that has a wide industrial client base. It will help improve overall market confidence in the banking sector”.

This project is consistent with the proactive and flexible approach that the EBRD is developing in order to support Ukraine’s banking sector and its economy in general as part of the response to the evolving economic crisis.

The EBRD has said it stands ready to invest over €500 million in the Ukrainian banking sector this year. It expects overall investments of €1 billion in 2009 compared with a euro879 million in 2008.

The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 March 2009, it had committed €4.4 billion through 173 projects.

Press contact: Anton Usov, Kiev - Tel: +380 44 270 6132; E-mail: usova@ebrd.com

LINK: http://www.ebrd.com/new/pressrel/2009/090516d.htm