The Ministry of Finance and the European Bank for Reconstruction and Development (EBRD) have discussed the possibility of providing a subordinated loan to Oschadbank with option to convert the loan into equity shares.
This was reported in a press release of the Ministry of Finance on Wednesday following the meeting of Finance Minister Serhiy Marchenko and Deputy Minister Oleksandr Kava with EBRD Managing Director, Eastern Europe and the Caucasus (EEC) Matteo Patrone.
“During the meeting, the issue of providing Oschadbank with EBRD long-term financing in the form of a subordinated loan with option to convert the loan into equity shares was raised. The parties continue to work actively to implement the sale of a stake in Oschadbank. The key issues remain the completion of the preparation procedures and the accession of Oschadbank to the households deposit guarantee system,” the ministry said.
The parties also discussed potential joint projects with the EBRD for 2022, namely the reconstruction of the Lower Dniester irrigation system.
Earlier, the Ministry of Agricultural Policy and Food announced the readiness of the EBRD to invest EUR 90 million for the reconstruction of the main water pumping station of the Lower Dniester irrigation system (Odesa region).
As reported, in March 2021, Ukrgasbank received a loan of EUR 30 million from IFC with option to convert the loan into equity shares. The next step for the privatization of the bank is to find a financial adviser for the bank.
