MinFin to work on Oschadbank attracting EUR 100 mln convertible loan from EBRD
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.