Summary of Proposed Investment
Project Number
24264
Company Name
RAIFFEISEN BANK JSC
Date SPI Disclosed
May 13, 2005
Country
Ukraine
Industry
Financial Markets
Projected Board Date
Jun 13, 2005
Status
Completed
Sector
Commercial Banking - SME Finance
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jun 30, 2005
Signed : Jul 19, 2005
Invested : Aug 8, 2005
Project Description
The proposed project is an equity / quasi-equity investment of up to $60 million in Aval Bank (Aval or the Bank) in Ukraine. Aval is an existing client of IFC. IFC committed a $15 million senior loan and $20 million subordinated loan (tier 2 capital) in December 2004, both of which were disbursed in February 2005 (IFC project ID number 22762).
With total assets in excess of $2.2 billion, Aval is the largest bank in Ukraine. The Bank has more than 1,400 branches and sub-branches, 12,000 corporate clients and 500,000 individual clients. It is one of the few leading banks without the support of an industrial oligarch, as it is controlled and majority owned by its management. Its leading position in the market makes it strategically important for the development of the Ukrainian banking sector.
IFC’s investment may be a convertible loan, to be converted into Aval common shares upon its acquisition by the strategic investor.
With total assets in excess of $2.2 billion, Aval is the largest bank in Ukraine. The Bank has more than 1,400 branches and sub-branches, 12,000 corporate clients and 500,000 individual clients. It is one of the few leading banks without the support of an industrial oligarch, as it is controlled and majority owned by its management. Its leading position in the market makes it strategically important for the development of the Ukrainian banking sector.
IFC’s investment may be a convertible loan, to be converted into Aval common shares upon its acquisition by the strategic investor.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Andriy Rozhok, Deputy Chairman
Phone: +380-44 490 8855
Fax: +380-44 490 8752
Phone: +380-44 490 8855
Fax: +380-44 490 8752