BNP Paribas Group has invited the European Bank for Reconstruction and Development (EBRD) to a partnership with UkrSibbank in the frame of the recent capital increase of $382m, executed by BNP Paribas at its Ukrainian subsidiary. As a result of the strategic agreement between the parties, the EBRD is going to provide a financial package of around $220m.
The EBRD financial package consists of a 10-year $140m subordinated loan in favor of UkrSibbank and a purchase of 15% of UkrSibbank shares for an amount of $82m.
The equity part of the transaction, which has been approved by the EBRD Board of Directors, will be finalized in the first quarter of 2011, subject to necessary legal and regulatory approvals.
This will be the first EBRD equity investment into a major Ukrainian bank.
UkrSibbank chairman of Supervisory Council Jean-François Varlet said with this capital increase and the partnership with EBRD, UkrSibbank will consolidate its leading market position on.