Economy 2022-08-15T04:52:54+03:00
Ukrainian news
Oschadbank To Attract Subordinated Debt From EBRD With Its Conversion Into Shares Of Financial Institution

Oschadbank To Attract Subordinated Debt From EBRD With Its Conversion Into Shares Of Financial Institution

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EBRD, loan, Oschadbank, subordinated debt

The State Savings Bank (Oschadbank) intends to attract subordinated debt from the European Bank for Reconstruction and Development (EBRD) and convert it into shares of a financial institution.

This was announced by the chairman of the board of Oschadbank, Serhii Naumov, on Facebook, Ukrainian News Agency reports.

On July 28, the Cabinet of Ministers authorized Finance Minister Serhii Marchenko to agree on a letter of credentials on behalf of the government between Oschadbank and the EBRD on the start of work on a project to attract a loan on a subordinated debt basis.

It is assumed that the EBRD, as a creditor, will have the option of converting the debt into shares of Oschadbank.

It is indicated that the amount of the planned transaction is about EUR 100 million in equivalent.

"The news is positive for two reasons. Firstly, this is another significant step towards the privatization of Oschadbank, which the government has identified as a strategic goal. Secondly, it is a future investment in Oschadbank, and therefore in the Ukrainian economy. The bank plans to send this money on the support of domestic business. Ahead is the coordination of positions of all parties to the transaction and a rather complicated process of preparing the transaction. For our part, we will do everything in our power to sign the necessary documents without delay," said the chairperson of the board Naumov.

As Ukrainian News Agency earlier reported, in May 2018, the EBRD announced that it allows entry into the capital of Oschadbank.

In November 2016, the European Bank for Reconstruction and Development and the Ukrainian government agreed to prepare Oschadbank for partial privatization in 2018.

The supervisory board of the State Savings Bank welcomes the strategic partnership established with the European Bank for Reconstruction and Development aimed at further reforming the state bank and transforming it into a financially stable and attractive banking institution.

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