MegaBank - Senior Loan

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The EBRD is considering offering up to €20 million in equity investment and long-term senior loan to Ukrainian bank MegaBank plc in order to strengthen the bank’s capital and liquidity positions in the current difficult economic environment in Ukraine. The proposed financing package will be used to support MegaBank’s capital and liquidity positions while the turbulence in the Ukrainian banking sector continues. Once the general economic environment and banking sector in Ukraine have stabilised the financing package proceeds will be used to revive MegaBank’s SME lending business. The project is in line with the transition impact objectives of the EBRD to strengthen capital base of local banks and to strengthen competition in the banking sector in general. The project also aims to strengthen capitalisation and promote stability in the banking system and lending continuity. The project also aims to improve risk management knowledge and skills of MegaBank through a technical assistance programme. MegaBank is a prominent regional Ukrainian bank with headquarters in Kharkiv. MegaBank has a well-developed branch network with presence in all administrative regions of Ukraine. MegaBank’s franchise is particularly strong in the Eastern Ukraine, where it has a leading market position among the local banks. A direct equity investment and a long-term senior loan. Up to €20 million. Screened FI, under the EBRD’s Environmental and Social Policy 2008. Megabank, an existing client of the EBRD's, will need to update its existing environmental and social procedures and management systems to reflect PRs 2 and 9, and apply these across its lending and investment portfolio. Monitoring will consist of a review of Annual Environmental Reports prepared Megabank and submitted to the EBRD for approval. It is envisaged that a technical assistance programme will be set up to complement the proposed financial support of MegaBank with an expert advice aiming to enhance MegaBank’s operating proficiency in the risk management area. Vyacheslav Ryuitn Deputy Chairman of the Management Board MegaBank 30, Artyoma Street, Kharkiv 61002, Ukraineа Phone: +380 57 714 06 63, Fax: +380 57 703 21 43 E-mail: ryt@megabank.net