Raiffeisen's Ukrainian Unit Borrows $150M

UKRAINE-The European Bank for Reconstruction and Development, the biggest financial investor in Ukraine with €4.2 billion committed in 194 projects, is providing a subordinated loan of $150 million to Raiffeisen Bank Aval JSC, a subsidiary of Austria’s cooperative lender Raiffeisen International, and the third largest bank in Ukraine.

This project is part of the EBRD’s previously-announced €150 million long-term financing programme for Raiffeisen International’s network banks in Ukraine, Romania and Russia. The 10-year subordinated loan will support Raiffeisen Bank Aval’s capital base, thus boosting the bank’s overall financial strength. This latest EBRD loan is a continuation of its support for the Ukrainian banking sector, which has reached over $700 million since the beginning of 2009.