Oschadbank, EBRD agree to move on with EUR 100 mln convertible loan

Oschadbank (OSCHAD) and EBRD signed on Oct. 22 a
mandate letter, backed by the Ministry of Finance, on the terms of future
cooperation for the bank privatization and improvement of corporate governance,
the parties reported on Oct. 25. The letter also mentions EBRD’s providing a
subordinated convertible loan for up to EUR 100 mln, Ukrainian side reported.

The step is in line with the development strategy of
the bank for 2021-2024 and with the government’s intention to reduce its share
in the banking sector from 60% to 25% per cent by 2025, both sides highlighted.

“This is an important step in our long term
partnership with Oschadbank and Ukraine’s Ministry of Finance on the
commercialisation and eventual privatisation path,” Matteo Patrone, EBRD
Managing Director for Eastern Europe and the Caucasus, commented.

Alexander Paraschiy: The deal
means that Oschadbank is ready for changes, including attracting EBRD as a
strategic partner, which might help to improve the bank’s fundamentals and
better prepare it for the future entrance of new strategic investors. This is
good for the image of Oschadbank.