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IFC Expands Access to Finance for Smaller Businesses and Residential Borrowers
in Ukraine
Kyiv, Ukraine, August 27, 2008—IFC,
a member of the World Bank Group, has announced a new stage of partnership
with OJSC Swedbank, a leading commercial bank in Ukraine. IFC Executive
Vice President and CEO Lars Thunell has signed a loan agreement with the
bank for on-lending to small and medium enterprises and residential mortgage
borrowers.
IFC is providing a total of $70 million
of loans to Swedbank and Swedbank Invest for its own account. IFC will
also play a critical role in mobilizing parallel and syndicated loans of
approximately $69 million in order to complete the financing package to
the bank.
This is one of IFC’s largest investments
in Ukraine’s financial sector and IFC’s first syndication for a Ukrainian
financial institution. It will support expansion of credit to small businesses
and potential home owners, with a focus on opportunities for people who
live in areas outside Kyiv and cannot access financing under current market
conditions.
“Partnership with IFC is highly important
for Ukraine’s banking sector, since it creates opportunities for local
financial institutions to grow while raising operational standards. I am
proud that we have opened a new stage of cooperation between IFC and Ukrainian
banks. Support of the private sector and better access to finance
remains priorities for Swedbank. With IFC’s financing we will give
a new impetus for small and midsize businesses in Ukraine,” said Sergey
Tigipko, CEO of OJSC Swedbank.
IFC has worked with Swedbank in Ukraine
since 2005, providing advisory services to help align the bank’s corporate
governance with international standards.
“We are very pleased to develop long-term
cooperation with strong Ukrainian financial institutions that make smaller
businesses a priority. Our partnership with Swedbank is an important example
of how IFC can provide both investments and advice to meet our clients’
evolving needs,” said Thunell.
About IFC
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
Ukraine became a shareholder and a member
of IFC in 1993. As of June 30, 2008, IFC has invested around $988 million
in 42 projects in the country. IFC’s investment program is expanding rapidly,
with a focus on Ukraine’s financial, agribusiness, energy efficiency and
cleaner production, and infrastructure sectors. IFC also offers advisory
programs in Ukraine on leasing, agribusiness, mortgage finance, energy
efficiency, and improving the business environment.
For more information, visit www.ifc.org/ukraine.
About OJSC Swedbank
Founded in 1820, the Swedbank group
is one of the leading banking groups in northern Europe, with market capitalization
of about $20 billion and 9 million retail clients and 600,000 corporate
clients in Sweden and the Baltic region. The group has operations in Copenhagen,
Helsinki, Luxembourg, New York, Oslo, Tokyo, Shanghai, Moscow, St. Petersburg,
and Kaliningrad. On July 9, 2007, it added Kyiv to the list.
OJSC Swedbank, a successor of TAS-Komerzbank,
is one of the largest Ukrainian banks, with a network of more than 180
offices throughout the country. Its 3,000 employees serve 200,000
retail and 18,000 corporate clients. It is the parent company of
Swedbank Invest.
For more information, please visit www.swedbank.ua
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