Banking

The Multilateral Investment Guarantee Agency (MIGA), which is the political risk insurance arm of the World Bank Group, said it has issued its fourth guarantee in support of the banking sector in Ukraine. The USD 247 mln guarantee is covering a shareholder loan from UniCredit Bank Austria AG to Joint Stock Commercial Bank for Social Development Ukrsotsbank [USCB UZ, U/R] – Ukraine’s fourth largest bank.

Ukrsotsbank [USCB UZ, U/R] has issued its report on the banks activities for the first nine months of 2008 in accordance with Ukrainian accounting standards. The bank increased its net assets by 24.1% in January-September 2008, establishing the value of net assets at UAH 38.753 bln (UAH 6.61 / USD 1).

In November 2008, Nadra Bank [NADR UZ, N/R] was on schedule with the repayment of a USD 100 mln debut Eurobond issue and a USD 130 mln syndicated loan that it has acquired. The Eurobond issue, which was arranged by Dresdner Kleinwort Wasserstein and the UBS Investment Bank, was successfully placed in 2005 at a rate of 9.5%.

According to Nadra Bank’s press service, Group DF became the major investor in Nadra Bank on November 19, 2008. "Nadra Bank has attracted a large investor, Group DF, a private international group of companies. Today, the bank possesses a stronger position than earlier, due to the synergy of a successful banking brand and a strong industrial group," states the press release.

Nadra Bank has paid off a syndicated loan worth USD 130 mln on time, according to the bank`s press service. The syndicated loan was provided by BayernLB and Fortis Bank SA/NV. The credit was provided at a one-year rate of Libor + 1.5%. The initial amount of the loan was USD 100 mln, but the amount was subsequently increased during the term of its syndication.

Raiffeisen Bank Aval, which is the second-top Ukrainian bank by assets, has repaid a syndicated loan of USD 200 mln, according to a press release issued by the bank.

It was previously announced that a 68% stake in ProminvestBank, the sixth-largest bank in Ukraine by assets, was sold to a strategic investor.

The international holding company 'Group DF' has agreed to purchase over 50% of the shares in Nadra Bank, one of Ukraine's largest banks, the company's press release announces.

Yesterday, the National Bank of Ukraine (NBU) announced that a 68% stake in PromInvestBank, one of the largest banks in Ukraine, has been acquired by a strategic investor, whose identity has not yet been disclosed.

Austria`s Raiffeisen Zentralbank Osterreich AG (RZB) has provided yet another loan, valued at USD 150 mln, to its Ukrainian daughter company, Raiffeisen Bank Aval [BAVL UZ, U/R].