HVB Guarantee Fa

completed

HVB Ukraine, ( the bank or the company) formerly known as Bank Austria Creditanstalt Ukraine (BACAU), was set up in 1997 by Creditanstalt (67.5%) a local Ukrainian bank Aval (12.5%), and IFC (20%). Following mergers between Creditanstalt and Bank Austria and then between Bank Austria and Hypovereinsbank Group, the HVB Ukraine became part of the Hypovereinsbank Group in late 2001.The project is to provide HVB Ukraine with an up to $15 million Guarantee Facility to enable the bank to solidify and expand its client base and reach more medium-sized Ukrainian corporates. The Guarantee Facility will be provided through HVB Ukraine’s parent, HVB Munich (HVB AG) for the portions of loans to HVB Ukraine clients which exceed HVB Ukraine’s single exposure limit. IFC will assume 95% risk of the HVB, AG share of the syndicated loan. Maximum loan sizes covered by the IFC guarantee will hence be twice HVB Ukraine’s limit (i.e. $ 6 million). Thus, IFC’s maximum exposure would be 47.5% - with HVB Ukraine taking 50% of the loan and IFC guaranteeing 95% of the balance. IFC would retain the right of refusal over each transaction. HVB has provided a pipeline of projects as potential loans under this facility.