The majority shareholder is Swedbank AB, one of Sweden’s leading banks with operations in Sweden, Estonia, Latvia, Russia and Lithuania with $257 billion in total assets, $11 billion in equity and $1.7 billion in net income for the year ended December 31, 2007.

The proposed IFC investment consists of up to $80 million in senior loans and an additional $80 million syndicated loan. Swedbank Ukraine has two legal entities: - Swedbank Invest, 100% owned by Swedbank (Ukraine); and - Swedbank (Ukraine) is 100% owned by Swedbank AB of Sweden, which finalized its acquisition of the former TAS-Kommerzbank in July 2007. Swedbank Ukraine provides a full spectrum of financial services and its subsidiary, Swedbank-Invest, is focused on project finance, investment activities and private banking activities.

70.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	70.0
Equity

* These investment figures are indicative

Swedbank (Ukraine) is a universal commercial bank headquartered in Kiev. Currently, Swedbank Group's network consists of a countrywide network of over 190 branches.

The project is expected to have development impacts at the level of the Bank, the Ukrainian banking system, as well as the broader economy. - Increased Efficiency in Banking System: Financing raised by IFC will support the lending activities of a fast growing banking group which has a meaningful market share in mortgage lending and lending to SMEs. This will lead to increased competition and improved pricing and terms for borrowers. - Significant economic benefits: IFC’s loans are being specifically targeted at expanding financing to two underserved sectors which have important linkages and multiplier effects to the broader economy. Small and medium sized enterprises have considerable potential to facilitate employment and economic growth but require financing in order to expand their activities, which this project will provide. IFC's loan will help to satisfy demand for housing among the growing Ukrainian middle class. Increasing of financing to the mortgage sector will help provide for more efficient allocation of housing.

Provision of long-term finance and sustainable access to funding: The project will mobilize long term funding needed to make loans affordable to borrowers which is not sufficiently provided by the private sector. For mortgage loans in particular, the tenor of the subloan is the single most important variable in determining monthly payments. Mobilization: To mobilize funding from private commercial banks under the B loan program. Since the beginning of market turbulence in August 2007, Ukrainian banks have seen a sharp increase in pricing of international finance, with some players being excluded from the market entirely. IFC’s B loan umbrella will mobilize lenders to provide such needed financing at affordable rates, particularly in light of the recent increase in risk aversion in international financial markets.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze TAS''s portfolio, and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of:

- The IFC FI Exclusion List; and/or
- The applicable National Social and Environmental Laws and regulations; and/or
- The IFC Performance Standards.

IFC will also review, if required, the capacity of TAS to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.

Based on the review, the project will be required to:

- Develop an, or upgrade if necessary any existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements;
- Submit a periodic report to IFC as per a format to be provided by IFC.

The residential mortgage finance component of the project will not attract any S&E requirements.