Aval II

completed

The proposed project is an equity / quasi-equity investment of up to $60 million in Aval Bank (Aval or the Bank) in Ukraine. Aval is an existing client of IFC. IFC committed a $15 million senior loan and $20 million subordinated loan (tier 2 capital) in December 2004, both of which were disbursed in February 2005 (IFC project ID number 22762). With total assets in excess of $2.2 billion, Aval is the largest bank in Ukraine. The Bank has more than 1,400 branches and sub-branches, 12,000 corporate clients and 500,000 individual clients. It is one of the few leading banks without the support of an industrial oligarch, as it is controlled and majority owned by its management. Its leading position in the market makes it strategically important for the development of the Ukrainian banking sector. IFC’s investment may be a convertible loan, to be converted into Aval common shares upon its acquisition by the strategic investor.