|
| Description of company and purpose of project |
HVB Ukraine, ( the bank or the company) formerly known as Bank Austria Creditanstalt Ukraine (BACAU), was set up in 1997 by Creditanstalt (67.5%) a local Ukrainian bank Aval (12.5%), and IFC (20%). Following mergers between Creditanstalt and Bank Austria and then between Bank Austria and Hypovereinsbank Group, the HVB Ukraine became part of the Hypovereinsbank Group in late 2001.
The project is to provide HVB Ukraine with an up to $15 million Guarantee Facility to enable the bank to solidify and expand its client base and reach more medium-sized Ukrainian corporates. The Guarantee Facility will be provided through HVB Ukraine’s parent, HVB Munich (HVB AG) for the portions of loans to HVB Ukraine clients which exceed HVB Ukraine’s single exposure limit. IFC will assume 95% risk of the HVB, AG share of the syndicated loan. Maximum loan sizes covered by the IFC guarantee will hence be twice HVB Ukraine’s limit (i.e. $ 6 million). Thus, IFC’s maximum exposure would be 47.5% - with HVB Ukraine taking 50% of the loan and IFC guaranteeing 95% of the balance. IFC would retain the right of refusal over each transaction. HVB has provided a pipeline of projects as potential loans under this facility. |
|
| Project sponsor and major shareholders of project company |
| HVB Ukraine is owned by HVB Group (91.3%) and IFC (8.7%). HypoVereinsbank ranks third among Europe’s banking groups. In 2002 the Group’s total assets and equity stood at approximately EURO 715 billion and EURO 17.3 billion respectively. Following the above mentioned mergers, HVB inherited a loss-making bank, with deteriorated capital. Both IFC and Aval decided not to participate in the supplement capital increase while HVB injected $5 million to ensure that the bank complied with prudential requirements. As a result, IFC’s shareholding was diluted from 20% to 8.7% and Aval bank sold its stake to HVB. |
|
| Total project cost and proposed IFC investment |
| The total project cost is $15 million dollars and it consists of an IFC Guarantee Facility to be provided to HVB Ukraine. |
|
| Location of project and description of site |
| The HVB Ukraine is headquartered in Kiev, the capital city.. The sub-borrowers of HVB Ukraine are located throughout the country. |
|
| Project Development Impact and IFC's Role |
The developmental impact of this project is high as it achieves the following objectives in a frontier country:
- Provide larger amounts of financing to Ukrainian companies, in need of longer and larger financial resources that are scarce in Ukraine due to underdeveloped banking sector.
- Allow a well-managed bank increase its loan portfolio, reach more Ukrainian clients and better manage its assets and liabilities position.
IFC’s support to HVB Ukraine will help the company reach more clients in need of financing. IFC’s Guarantee Facility will provide the bank with needed financing in an environment where long-term financial resources are still scarce. |
|
| Environmental and social issues - Category FI-2 |
This is an FI Type 2 project. HVB Ukraine will be required to demonstrate that its existing environmental management system and environmental performance standards for investments are adequate to address the projects anticipated to be guaranteed through the project. IFC will assess HVB Ukraine’s EMS.
|
|
| To contact the project company, please write to: |
HVB Ukraine
Mr. Gerd Wriedt, Chairman of the Management Board
14-A, Yaroslaviv val
01304, Kyiv, Ukraine
Phone: +380-44-230-3301-
Fax: +380-44-230-3391
Email: gerd.wriedt@ua.bacai.com |
|