Creditanstalt Ukraine

completed

Summary Of Project Information (SPI)Project NameUkraine-Creditanstalt Ukraine     RegionEuropeSectorProject No008166Projected Board DateJune 1, 1997Company NameCreditanstalt UkraineTechnical Partner and/or Major Shareholders The foreign sponsor is the Creditanstalt Group (CA), one of Austria’s two leading banks. CA provides corporate and personal banking, international banking, and investment banking services in Austria and throughout Central Europe and Russia. It also has extensive brokerage, fund management and leasing operations in the region. The local partner, AvalBank, was founded in 1992 and is one of the largest private banks in Ukraine with 40 branches throughout the country.Project Cost Including proposed IFC investment US$18 million; proposed IFC equity investment of up to US$3 million and credit line of up to US$5 million  Location of project and Description of site Kiev, Ukraine.Description of Company and Purpose of Project The project involves the establishment of a joint venture commercial bank in Ukraine with Creditanstalt and a local Ukrainian bank, AvalBank. It is envisaged that the bank will be capitalized at ECU10 million (about US$13 million), with Creditanstalt (jointly with affiliates) taking a majority stake, and AvalBank and IFC taking the balance. IFC is also considering providing the bank with a $5 million credit line for onlending primarily for trade finance and working capital. The bank would initially target corporates with western partners and local exporters.     Environmental Category and Issues This is a Financial Intermediary (FI) Category Project according to IFC’s environmental review procedure. For relevant operations, Creditanstalt - Ukraine will be required to implement an environmental management system consistent with host country requirements and World Bank policies and guidelines.           Date SPI sent to PIC April 30, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384