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
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.
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.