OTP Bank Ukraine - Mortgage Credit Line

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The proposed project is medium and long term financing to Raiffeisenbank Ukraine (RBU) to expand its lending activities to new segments such as SME and mortgage. The project consists of a USD 10 million SME credit line for on-lending to local SMEs and a USD 10 million Mortgage credit line to provide long-term financing for individual sub-borrowers for the purposes of purchase or renovation of their residences. The proposed financing will: Successful implementation of these two projects will support the development of the local SMEs which usually have limited access to long-term finance and increase RBU’s mortgage lending operations in the market where this type of lending is only developing and is restrained by lack of long-term funding. Working with the RBU EBRD will be able to access and provide the necessary funding to a wide range of SME clients as well as provide long-term financing for residential mortgages. The latter will support the growth of mortgage lending which is relatively new in Ukraine. Ensuring development of standardised mortgage loan portfolio will help the client to securitize its mortgage loan portfolio in the future. Raiffeisenbank Ukraine is the universal commercial bank operating in Ukraine since 1998 with total assets of USD 851 million and equity of USD 85 million at the end of 2004. RBU is a 100% subsidiary of Raiffeisen International Bank Holding AG. EBRD financing includes: USD 20 million. Screened FI. RBU will be required to comply with EBRD’s Environmental Procedures for Banks which require adherence to the Bank’s Environmental Exclusion and Referral List, compliance with the applicable national environmental, health and safety requirements and submission of an annual environmental report to the Bank. None. Mr Igor Frantskevych, Chairman of the Management Board Phone: +380-44-490-0510 Fax: +380-44-490-0501 E-mail: iuaafri@rbu-kiev.raiffeisen.at