EBRD to purchase 30% in Raiffeisen Bank Aval

The European Bank for Reconstruction and Development (EBRD) will participate in UAH 3.15 bln capital increase of Raiffeisen Bank Aval (BAVL UK), the bank reported on Nov. 25. Aval’s capital increase by about 50% is going to be approved at the bank’s shareholder meeting on Dec. 3. As a result of the deal, the bank’s main shareholder, Raiffeisen Bank International, is going to reduce its stake to 67% from 96% currently. In turn, the EBRD will become a holder of about a 30% stake in the bank.

Alexander Paraschiy: The EBRD’s backing in the capital increase will enable Raiffeisen Bank International to avoid increasing its exposure to the Ukrainian market, while at the same time strengthen Aval’s position in Ukraine. In general, the news is encouraging for the bank, which is among the safest in Ukraine’s banking system.