20 Aug 2009 16:27

EBRD, KfW to acquire 30% stake in Ukraine's Megabank

KYIV. Aug 20 (Interfax) - The European Bank for Reconstruction and Development (EBRD) and Germany's KfW signed an agreement on Thursday on the acquisition of a 30% stake in Ukraine's Megabank, an Interfax correspondent reported from the signing ceremony.

The EBRD and KfW will provide Megabank with 28.9 million euros in support. The financing program envisions the EBRD allocating Megabank a five-year loan for 10.4 million euros and KfW issuing the bank a seven-year subordinated loan for 2.5 million euros.

The banks will also arrange a technical aid program for the bank totaling $0.9 million, which will help improve risk management at the bank.

Viktor Subotin, head of Megabank's supervisory board, said at a press conference following the signing that the EBRD and KfW would each become owners of a 15% stake in the bank after buying up an additional share issue for 150 million hryvni. The bank's charter capital will increase 43% to 500 million hryvni as a result of the share issue. The bank's shareholders are to consider the additional share issue on August 21.

Megabank (formerly Dobrodiy Bank) was founded in 1990 and is based in Kharkiv.

The bank's biggest shareholders on July 1, 2009 were CJSC M-Invest with 38.9981% and Invest Stock Company LLC with 24.9761%. The bank's biggest beneficiary at the start of July was Viktor Subotin, general director of turbine equipment producer Turboatom.

Megabank ranked 255th by assets among CIS banks and 49th among 182 Ukrainian banks at the end of 2008 in the Interfax-1000: CIS Banks ranking.

The official exchange rate on August 20 was 7.848 hryvni/$1.