OREANDA-NEWS. December 21, 2010. BNP Paribas Group has invited the European Bank for Reconstruction and Development to a partnership with UkrSibbank in the frame of the recent capital increase of USD 382 million, executed by BNP Paribas at its Ukrainian subsidiary. As a result of the strategic agreement between the parties, the EBRD is going to provide a financial package of around USD 220 million, reported the press-centre of EBRD.

The EBRD financial package consists of a ten-year USD 140 million subordinated loan in favour of UkrSibbank, one of the largest privately owned banks in the country, and a purchase of fifteen per cent of UkrSibbank shares for an amount of USD 82 million. The equity part of the transaction, which has been approved by the EBRD Board of Directors, will be finalised in the first quarter of 2011, subject to necessary legal and regulatory approvals.

Through this capital increase and partnership, BNP Paribas and EBRD demonstrate their confidence in the potential of the Ukrainian economy and in the capacity of UkrSibbank to further develop its activities on this market.

This will be the first EBRD equity investment into a major Ukrainian bank with a diverse client base. It will reinforce EBRD’s contribution to the support to the banking sector recovery, which has to date exceeded USD 1 billion of capital and debt funding provided since the beginning of the financial crisis.

Jean-Francois Varlet, Chairman of UkrSibbank’s Supervisory Council said: “With this capital increase and the partnership with EBRD, UkrSibbank will consolidate its leading market position on. Our bank will be able to better serve its 1.9 million clients and positively contribute to Ukraine’s economy”.

Nick Tesseyman, EBRD Managing Director for Financial Institutions said: “This transaction is very timely. Ukraine’s economy is recovering after the crisis and it badly needs a solid foundation in a shape of a functioning banking sector. We are happy to be UkrSibbank’s strong and reliable partner able to provide our specific expertise and support in the future”.

The European Bank for Reconstruction and Development is the largest financial investor in Ukraine. As of 1 December 2010, it had committed over €5.7 billion through 208 projects.  

JSC UkrSibbank (www.ukrsibbank.com / www.my.ukrsibbank.com) was registered on June 18, 1990. The Bank has a full NBU license on banking No. 75 dated December 28, 2009. As of 01.11.2010: net assets – UAH 44.00 bln., capital – UAH 4.72 bln., loan and investment portfolio – UAH 33.17 bln., corporate customers’ funds – UAH 8.18 bln., individuals’ funds – UAH 12.27 bln. Regional network currently numbers to around 750 branches and outlets throughout Ukraine. 81.42% of shares of JSC “UkrSibbank” are held by BNP Paribas Group. The Bank is audited by International Company LLC AF “PriceWaterhouseCoopers” (Audit) and audit firm "South-star" Ltd.