The European Bank for Reconstruction and Development (EBRD) is planning to acquire a 30% stake in Ukraine’s Raiffeisen Bank Aval (RBA), a subsidiary of Raiffeisen Bank International (RBI).
The deal, subject to approval by existing shareholders of RBA, will include EBRD participating in a EUR122m capital increase at RBA.
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This is expected to improve the Ukrainian lender’s Tier 1 ratio, EBRD said in a statement.
At the same time, RBI’s stake in RBA will be reduced to about 67% from the existing 96.2%, with the exact percentage based on the extent to which RBA’s minority shareholders take part in the share issue.
Commenting on the deal, EBRD managing director financial institutions Nick Tesseyman 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."
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