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EBRD to become 30 per cent shareholder in Raiffeisen Bank Aval

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Autor: Bancherul.ro
2015-11-25 17:39

EBRD to become 30 per cent shareholder in Raiffeisen Bank Aval (press release):

The European Bank for Reconstruction and Development (EBRD) is about to become a 30 per cent shareholder in Raiffeisen Bank Aval JSC (RBA), one of the leading universal banks in Ukraine and a subsidiary of Raiffeisen Bank International AG (RBI), under an agreement signed in Kiev today.

The transaction to be concluded with the EBRD includes its participating in a UAH 3.15 billion (EUR 122 million) capital increase in RBA, which will boost the bank’s Tier 1 ratio. The capital increase is subject to approval of a general meeting by RBA’s existing shareholders on 3 December. As a result of the transaction, the EBRD will hold 30 per cent of RBA’s total shares.

RBI’s stake in Raiffeisen Bank Aval will decrease from currently 96.2 per cent to around 67 per cent. The exact percentage will depend on the extent to which RBA’s approximately 109,000 minority shareholders will participate in the capital increase.

Nick Tesseyman, EBRD Managing Director Financial Institutions, said: “By becoming an equity partner, the EBRD is strengthening the capital base of Raiffeisen Bank Aval alongside with RBI, contributing to a much-needed recapitalisation of Ukraine’s banking sector as a whole and deepening its long-standing cooperation with Raiffeisen Bank International, a major international banking group. This partnership will reinforce Raiffeisen Bank Aval’s position as a major provider of modern banking services of high quality both to businesses and individuals in Ukraine and help unlock the country’s potential.”

“The partnership with the EBRD is a confirmation of Raiffeisen Bank Aval’s stability as well as strength and it proves that RBI is on the right track in the challenging environment provided in Ukraine at the same time”, said Karl Sevelda, RBI’s CEO and Chairman of Raiffeisen Bank Aval’s Supervisory Board. “And it is a further proof of the excellent cooperation between the EBRD and RBI in the emerging markets of Central and Eastern Europe.”

On 30 September 2015 Raiffeisen Bank Aval had a Tier 1 ratio of 6.86 per cent according to local standards, well exceeding the minimal requirements of the Ukrainian National Bank, which has set the threshold at 4.0 per cent (the threshold will increase to 7.0 per cent by 1 January 2019). After the transaction Raiffeisen Bank Aval’s Tier 1 ratio will be 14.19 per cent according to local standards (all pro-forma figures are based on Q3/2015 results and actual FX-rates).

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