BNP Paribas enlists EBRD to help Ukrainian unit

21st December 2010, Comments 0 comments

BNP Paribas said Tuesday it had enlisted the help of the EBRD, which will provide 220 million dollars (167 million euros) of a planned 382 million dollar capital increase in its Ukrainian unit UkrSibbank.

The package consists of a 10-year 140-million-dollar subordinated loan to UkrSibbank, one of the largest privately owned banks in the country, and the purchase of 15 percent of UkrSibbank's shares for 82 million dollars, the European Bank for Reconstruction and Development said in a separate statement.

"Through this capital increase and partnership, BNP Paribas and EBRD demonstrate their confidence in the potential of the Ukrainian economy and in the capacity of UkrSibbank to further develop its activities on this market," said the EBRD.

"With this capital increase and the partnership with EBRD, UkrSibbank will consolidate its leading market position. Our bank will be able to better serve its 1.9 million clients and positively contribute to Ukraine's economy," Jean-François Varlet, Chairman of UkrSibbank's Supervisory Council, was quoted as saying.

© 2010 AFP

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