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.
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.
