OREANDA-NEWS. July 02, 2009. The European Bank for Reconstruction and Development is providing a US 134.5 million loan to Ukreximbank, one of the largest banks in the country. Part of the loan of up to US 84.5 million will be syndicated to a group of commercial banks including: Standard Bank Plc., Deutsche Pfandbriefbank AG, CALYON, Citibank N.A., London Branch, UniCredit Bank Austria AG, Bayeriche Hypo- und Vereinsbank AG, reported the press-centre of EBRD.

This first syndicated transaction in Ukraine’s banking sector since the beginning of the crisis will contribute to the banking sector stability and promote lending to the real economy. The deal is a step forward to restore confidence of the international investors in Ukraine and its banks.

It builds on the success of several previous transactions between the Ukreximbank and the EBRD, including a US 250 million subordinated loan, signed in May 2009, aimed at boosting the capital base and promotion of energy efficiency lending and export financing.

The European Bank, which earlier in the year said it stands ready to invest over EUR500 million in the Ukrainian banking sector in 2009, has already committed around EUR 390 million for this purpose. The majority of this amount, of up to EUR 300 million, has been committed to projects with locally-owned banks.

The EBRD expects overall investments of EUR 1 billion in 2009 compared with a EUR 879 million in 2008.

The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 July 2009, it had committed EUR 4.3 billion through 179 projects.