14:14 22.01.2018

EBRD provides EUR 20 mln guarantees to Raiffeisen Bank Aval for corporate lending

2 min read
EBRD provides EUR 20 mln guarantees to Raiffeisen Bank Aval for corporate lending

The European Bank for Reconstruction and Development (EBRD) is providing guarantees for EUR 20 million to Raiffeisen Bank Aval (Kyiv) for corporate lending during three years.

"The total amount of the program is up to EUR 20 million. Our clients would soon receive information and proposals to use this long-term loan," Raiffeisen Bank Aval Board Chairman Volodymyr Lavrenchuk said at a press conference in Kyiv on Monday.

He said that the term of the program is three years. The bank expects that the average size of loans would be within EUR 4-6 million. He also said that the EBRD would take some risks on loan agreements.

EBRD Director for Ukraine Sevki Acuner said that under the program the EBRD could cover up to 65% of risks for some clients. Usually it is 50% under similar programs, but in this concrete case the EBRD feels comfortable when the bank takes 65% of the risks, he said.

He also said that there are some potential projects than could be implemented under the program. He said that the Raiffeisen Bank Aval's clients that would receive loans under the program would be able to have access to the technical assistance program financed by the EU and backed by the EBRD.

Lavrenchuk also said that Raiffeisen Bank Aval in 2017 issued loans to 1,100 companies, including 300 new corporate clients.

"We are interested that as many clients as possible receive loans compared with the situation when one client takes the entire limit. However, both cases would have the same effect for the bank's profit," he said.

As reported, earlier the EBRD provided $50 million guarantee to UkrSibbank (Kyiv) for corporate clients lending.

Raiffeisen Bank Aval was founded in 1992. As of June 30, 2017, Raiffeisen Bank International (RBI, Austria) owned 68.28% of the Ukrainian bank's charter capital, while the European Bank for Reconstruction and Development (EBRD) held 30%.

Raiffeisen Bank Aval ranked fifth in terms of assets worth UAH 66.102 billion among 88 operating banks as of October 1, 2017, according to the National Bank of Ukraine.

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