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| Kreditprombank |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 25062 |
| Company name | Kreditprombank |
| Country | Ukraine |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Hold |
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| Date SPI disclosed | July 26, 2006 |
| Projected board date | August 24, 2006 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
The project consists of $30 million financing for Kreditprombank (the Bank), a medium-sized Ukrainian bank. The proposal consists of 3 components, each individually designed to support the Bank’s needs:
- a senior loan for mortgages,
- a subordinated loan and
- a trade finance line under IFC’s Global Trade Finance Program.
The purpose of this project is to support and help develop Kreditprombank into a leading local bank. The project is also designed to assist in consolidation of the Ukrainian banking sector by working with select banks adopting best industry practices in corporate governance and operations management with the ultimate goal of attracting strategic partners. |
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| Project sponsor and major shareholders of project company |
OSJC Kreditprombank was initially founded under the name of Inkombank Ukraine and was registered by the National Bank of Ukraine (the NBU) on May 20, 1997. After the Russian banking crisis and the subsequent liquidation of Inkombank in Russia a group of investors around the current shareholders took over the Bank and changed its name to Kreditprombank. With equity of $65 million and total assets of $573 million as of end-2005, the Bank is now among 15 largest banks in Ukraine. The current shareholders owning more than 5% of the bank are as follows:
- Homertron Trading Limited: 49.98%
- OJSC “CC "Shakhta Krasnoarmeyskaya Zapadnaya № 1": 9.16%
- PAPOUNIDIS KONSTANTINOS: 8.44%
- CABI Ltd.: 6.63%
- Energon Capital Finance: 5.67%
- Opened Joint Stock Company "Yasinovskiy Coke-Chemical Plant": 5.42%
- Others: 14.70% |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $30 mil equivalent. |
| Location of project and description of site |
| Kreditprombank is located in Kyiv, Ukraine. |
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| Anticipated development impact of the project |
The proposed project is expected to have the following development impact:
- Strengthen primary mortgage market and increase access to new housing. The project is expected to contribute to home building and to generating additional employment in construction sector;
- Strengthen the Bank’s mortgage origination capacity and allow it increase its capital base to support further growth.
- Support the Bank in its efforts to prepare for attracting new external capital by improving efficiency of operations and transparency; |
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| IFC's expected development contribution |
IFC will contribute to the developmental impact of the project through:
- providing long term finance, which is not otherwise available in the market,
- supporting Kreditprombank with advice on operations and risk management, and
- strengthening the bank’s mortgage underwriting capacity. |
| Environmental and social issues - Category FI |
| This project is categorized as a Financial Intermediary (FI) Type 1 project according to IFC’s environmental and social review procedure. The Bank will be required to demonstrate that it has established (and if not, to establish) an environmental management system designed to ensure that lending activities comply with Ukrainian environmental, health and safety standards. |
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| For inquiries about the project, contact: |
Vasily A. Perepelitsa, Vice-President
Investment and International Business
38, Druzby Narodiv Blvd., Kyiv, 01014, Ukraine
Telephone: +380 44 490 2776 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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