OREANDA-NEWS. January 11, 2011. SCM Group agreed with Renaissance Credit Group to buy 100% of Bank Renaissance Capital (operating under Renaissance Credit brand).

The First Ukrainian International Bank (PUMB) and the Renaissance Capital private equity firm were the financial advisors in the transaction (consulting and structuring of the deal).

The transaction fully complies with SCM's banking development strategy and aims at consolidation and yield increase. In particular, it is the case for retail business where consumer finance is one of the most promising directions.

"For SCM banking is the top priority, so we are interested in expanding this area and entering new financial market segments, in particular retail and POS-lending," noted Ilya Arkhipov, SCM Director of Business Development. "Renaissance Credit is a retail bank with a strong growth potential, which was successful in consumer lending in the Ukrainian market before the downturn. It has a well established consumer finance infrastructure and a professional team. Its integration into SCM's banking business will allow us to expand the Group's portfolio in finance sector, enter a new market segment, improve the growth potential of our business and make it more diversified.”

While looking for investment opportunities we had considered different options but made our choice in favor of Renaissance Capital.” This bank is interesting for us because of its efficient retail lending model. We are acquiring an established business including the client base and a credit portfolio. SCM Group has all the required resources and expertise to develop this area and it is especially important now when we see the first signs of economic recovery," underlined Ilya Arkhipov.

Bank Renaissance Capital has a specialized retail network, a product line, risk management system and a professional team. It will remain a separate legal entity operating within the SCM Group's banking business," added Mr. Arkhipov.

The acquisition of 100% of Renaissance Capital will be completed after the SCM Group obtains all the required permissions from the National Bank of Ukraine and the Antimonopoly Committee of Ukraine.