Aval

completed

This project consists of a senior loan secured by loan assets of up to $30 million to JSC Post-Pension Bank Aval (Aval or the bank), the largest Ukrainian bank, for on-lending to SMEs. The bank has a country wide branch network with more than 1,300 branches and 16,000 employees, who serve 30,000 corporate and more than 3 million individual clients. The bank offers a wide range of services but sees its comparative advantages in lending to SMEs and retail. IFC’s financing would support this strategy and would increase Aval’s ability to offer long term loans to small and medium sized private companies. This transaction would form part of IFC’s strategy to increase its investment activities in Ukraine, reflecting the country’s improved economic climate. Other potential transactions currently being considered in the financial sector include a follow-on loan to ProCredit Ukraine, and loans to support mortgage financing to Raiffeisen Bank Ukraine and to a start-up, International Mortgage Bank.