MinFin to work on Oschadbank attracting EUR 100 mln convertible loan from EBRD
29 July 2021
The Cabinet of Ministers ordered the Finance Minister
to approve the initiation of an EBRD convertible loan for the state bank
Oschadbank (OSCHAD) for EUR 100 mln, the bank’s CEO Sergiy Naumov wrote in
social media on July 28. “This is one more step towards the privatization of
Oschadbank defined by the government as a strategic goal,” Naumov wrote. The
bank is planning to use the funds gained for “support of Ukrainian business,”
he wrote.
Recall, in January, another state-controlled bank,
Ukrgazbank, attracted a convertible loan
from the International Finance Corporation for EUR 30 mln. The loan can be
converted into up to 20% of the bank’s equity, implying a P/B of at least 0.5x.
Alexander Paraschiy: Taking into
account that for Ukrgazbank the process of receiving the loan tranche took over
three years we should not expect the completion of the Oschadbank deal any time
soon. In any case, this Cabinet initiative indicates it is serious about
decreasing the state’s presence in the banking sector.
