MegaBank, a Ukranian commercial lender, has tapped €28.9mn (US$41mn) in new funding from the EBRD and German development bank KfW.
MegaBank will sell a 30% stake in its business to the two banks, as well as receiving a senior loan of €10.4mn from the EBRD and a subordinated loan of €2.5mn from KfW. The deal should help the bank’s liquidity position and capital base. The EBRD and KfW will also organising a technical-assistance programme worth US$900,000 to help improve MegaBank’s risk management.
The EBRD has already provided more than US$500mn to Ukranian banks this year, including an US$80mn subordinated loan to JSC Bank Forum and a US$134.5 million loan to Ukreximbank. Meanwhile, KfW’s involvement in the MegaBank deal is part of the bilateral German-Ukrainian Financial Co-operation agreement, which started in 2003.
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