Summary of Proposed Investment
Project Number
20963
Company Name
Ukrsotsbank,PAT
Date SPI Disclosed
Apr 25, 2003
Country
Ukraine
Industry
Financial Markets
Projected Board Date
May 23, 2003
Status
Completed
Sector
Commercial Banking - Risk Mgmt Facility
Department
Global Industry, Financial Markets
Environmental Category
FI-2 - Limited
Previous Events
Approved : Jun 23, 2003
Signed : Jun 28, 2003
Project Description
HVB Ukraine, ( the bank or the company) formerly known as Bank Austria Creditanstalt Ukraine (BACAU), was set up in 1997 by Creditanstalt (67.5%) a local Ukrainian bank Aval (12.5%), and IFC (20%). Following mergers between Creditanstalt and Bank Austria and then between Bank Austria and Hypovereinsbank Group, the HVB Ukraine became part of the Hypovereinsbank Group in late 2001.
The project is to provide HVB Ukraine with an up to $15 million Guarantee Facility to enable the bank to solidify and expand its client base and reach more medium-sized Ukrainian corporates. The Guarantee Facility will be provided through HVB Ukraine’s parent, HVB Munich (HVB AG) for the portions of loans to HVB Ukraine clients which exceed HVB Ukraine’s single exposure limit. IFC will assume 95% risk of the HVB, AG share of the syndicated loan. Maximum loan sizes covered by the IFC guarantee will hence be twice HVB Ukraine’s limit (i.e. $ 6 million). Thus, IFC’s maximum exposure would be 47.5% - with HVB Ukraine taking 50% of the loan and IFC guaranteeing 95% of the balance. IFC would retain the right of refusal over each transaction. HVB has provided a pipeline of projects as potential loans under this facility.
The project is to provide HVB Ukraine with an up to $15 million Guarantee Facility to enable the bank to solidify and expand its client base and reach more medium-sized Ukrainian corporates. The Guarantee Facility will be provided through HVB Ukraine’s parent, HVB Munich (HVB AG) for the portions of loans to HVB Ukraine clients which exceed HVB Ukraine’s single exposure limit. IFC will assume 95% risk of the HVB, AG share of the syndicated loan. Maximum loan sizes covered by the IFC guarantee will hence be twice HVB Ukraine’s limit (i.e. $ 6 million). Thus, IFC’s maximum exposure would be 47.5% - with HVB Ukraine taking 50% of the loan and IFC guaranteeing 95% of the balance. IFC would retain the right of refusal over each transaction. HVB has provided a pipeline of projects as potential loans under this facility.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
HVB Ukraine
Mr. Gerd Wriedt, Chairman of the Management Board
14-A, Yaroslaviv val
01304, Kyiv, Ukraine
Phone: +380-44-230-3301-
Fax: +380-44-230-3391
Email: gerd.wriedt@ua.bacai.com
Mr. Gerd Wriedt, Chairman of the Management Board
14-A, Yaroslaviv val
01304, Kyiv, Ukraine
Phone: +380-44-230-3301-
Fax: +380-44-230-3391
Email: gerd.wriedt@ua.bacai.com