|
Kyiv, Ukraine, July 28, 2009
—IFC, a member of the World Bank Group, today announced it will provide $20 million in financing to OJSC Megabank, a leading commercial bank in Ukraine’s Kharkiv region, to help the bank increase access to finance for small and medium businesses.
IFC’s financing consists of a $10 million subordinated loan and a $10 million convertible senior loan, giving IFC an option to acquire equity in the bank. It provides the bank with liquidity and strengthens its capital base, while increasing the availability of banking services and financial products in a frontier region of a country hard hit by the global financial crisis.
“IFC’s investment comes at a challenging time for the Ukrainian banking sector,” said Olena Zhukova, CEO of OJSC Megabank. “This financing will help Megabank improve its stability, despite the financial crisis, and enable us to increase our lending to small and medium businesses. IFC’s funding is a strong indication of support and will increase the confidence of clients and depositors.”
IFC has worked with Megabank in Ukraine since 2005, when it provided the bank with advisory services to help align the bank’s corporate governance practices with international standards.
Jyrki Koskelo, IFC Vice President, said, “As part of our regional crisis-response initiatives, IFC is pleased to expand our partnership with OJSC Megabank to help restore confidence in Ukraine’s banking sector. Our investment in OJSC Megabank should boost access to finance for local enterprises, helping preserve jobs, and contributing to the economic recovery in Ukraine’s frontier regions.”
IFC, through its crisis-response initiatives in sectors including banking, infrastructure, and trade as well as through its traditional investment and advisory services, is expected to contribute up to €2 billion to Central and Eastern Europe.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
About OJSC Megabank
OJSC Megabank, founded in 1990, is a leading midsize universal commercial bank in northeastern Kharkiv region. Megabank ranks in the top 50 of Ukrainian banks in terms of total assets, and its regional network includes 187 affiliates in 25 regions nationwide serving more than 340,000 clients. In addition to offering a full range of banking services, Megabank also provides utility and rental payment services to households through its unique Integrated Clearing Center. For more information, visit
www.megabank.net
.
|
