JSC “Oschadbank” has re-launched the Atmosfera shopping center and Ramada Encore Kyiv hotel and the rights of claim to Niteko Company LLC for UAH 1.018 billion through the OpenMarket electronic trading system (SE “SETAM” of the Ministry of Justice of Ukraine), the SETAM service reports.
The lot includes real estate in Kyiv, 103 Stolychne Shosse (buildings 1, 2, 3, 4), including an administrative and hotel center with a total area of 39.6 thousand square meters (Ramada Encore Kyiv), a two-level parking lot, and the Atmosphere shopping center with a parking lot with a total area of 48.5 thousand square meters. The lot also includes the sale (assignment) of the right of monetary claim to Niteko Company LLC.
“One of the biggest advantages of the lot is its location at the intersection of three major highways towards the elite villages of Obukhiv district and Koncha Zaspa. It is an excellent choice for shopping and recreation due to the large number of popular shops, food courts and entertainment areas. This makes Atmosfera a profitable business that has already gained a reputation and is known not only in Kyiv but also abroad,” said Oleksandr Mamro, CEO of SETAM.
The guarantee fee is UAH 50 million 905 thousand 257. The auction is scheduled for October 18, 2024.
In March 2024, when Oschadbank first put up for sale the mall and hotel at 103 Stolychne Shosse, the lot also included 11 land plots in Kozyn with a total area of 17.3 hectares for residential construction. The starting price of the full lot was UAH 1.79 billion.
According to Opendatabot, the owner of Niteko Company LLC is FC NGI Management LLC, and the ultimate beneficiary is Dmytro Buriak. At the end of 2023, the company reduced its net loss by 4.9 times compared to 2022 – to UAH 70.2 million, while net income increased by 69% to UAH 146.2 million.
As reported, Wyndham Hotel Group (WHG) opened its largest four-star hotel under the Ramada Encore brand in June 2012 as part of the Stolychnyi mixed-use complex (formerly Domosfera) at 103 Stolychne Shosse in the Holosiivskyi district of Kyiv.
The 22-storey hotel has 332 rooms and 58 apartments. The hotel’s infrastructure includes a conference center with a total area of more than 4 thousand square meters with 20 meeting rooms, a two-level parking lot for 1150 cars, two fitness centers, restaurants, a sushi bar and a summer terrace. The hotel is managed by DBI Hotels & Resorts (Switzerland).
The Atmosphere shopping and entertainment center (SEC) in Stolychny was opened on April 12, 2014. The mall has about 50 premium shops and boutiques, a food court, an entertainment zone, a karting center, a fitness center, a cinema with restaurant service and an event hall with 800 seats.
The developer of the project is DeVision Group. The mixed-use complex also includes Domosfera shopping center with a leasable area of 30.7 thousand square meters, opened on May 16, 2009, and Europe, a B+ business center with a total area of 22 thousand square meters and a parking lot for 300 cars. The total area of the mixed-use complex is 158.2 thousand square meters.
State-owned Oschadbank (Kyiv) and one of the largest grain market operators in Ukraine, JV Nibulon LLC, have agreed on a series of new loan agreements to replenish working capital, which refinance the company’s investments totaling $20.3 million, the first part of this loan program for $13 million has already been signed, the bank’s press service reports.
According to the report, Nibulon will use the funds to restore working capital after investing in the construction of a new transshipment terminal on the Danube. The Bessarabian branch began operations in 2022 and became the main route for exporting agricultural products, which was crucial in the context of the aggressor’s blockade of Ukrainian seaports in previous periods.
“The replenishment of working capital guarantees Nibulon’s ability to fully support the procurement campaign for the 2024/25 season and support the Ukrainian farmer in times of war,” the bank said, adding that after heavy losses and a difficult return to stability, the company was able to gain momentum and develop an ecosystem that will ensure sustainable food security.
“Nibulon has been a long-standing and reliable partner for us for over 6 years. It is one of the pillars of the country’s food potential, including exports. To date, the company’s total loan portfolio in Oschad is already almost UAH 2 billion. Given that Oschadbank has a high level of liquidity, we are ready to continue financial support for Nibulon in all its initiatives to restore its leadership positions in global markets lost due to the full-scale war,” said Yuriy Katsiyon, Deputy Chairman of the Board of Oschadbank in charge of corporate business, during the signing of the agreement.
The agroholding noted that the support of the real economy by state-owned banks is evidence of the government’s consistent adaptation of its policy to the conditions of a full-scale war and its real focus on helping businesses.
“We see changes. We see a targeted state policy of supporting domestic business in action. This is a direct recognition of the critical role of strategic enterprises for the further development of Ukraine and a guarantee of our successful future,” said Andriy Vadatursky, CEO of Nibulon. Andriy Vadatursky, CEO of Nibulon.
“We are grateful to Oschadbank for its systematic and consistent support of us, representatives of companies in the sector that ensures the country’s food security. At the very beginning of the full-scale war, Oschadbank provided Nibulon with additional funding for the 2022/2023 sowing campaign to prevent a food crisis that the aggressor was trying to create. In 2023, Oschadbank was one of the first to restructure Nibulon’s pre-war loan to support the company, which suffered losses due to the destruction of infrastructure during the hostilities, the blocking of sea routes from the port of Mykolaiv, and the forced reorientation to other logistics routes. And now we have new funding that we will use for the procurement campaign to support small and medium-sized agricultural producers,” said Vitalina Marchenko, Head of Nibulon’s Banking Department.
As reported earlier, Nibulon Group has more than 25 Ukrainian and foreign creditors, with the vast majority of whom have already signed restructuring agreements.
Nibulon JV LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, capacity to store 2.25 million tons of agricultural products at a time, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.
“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries. In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.
Nibulon’s losses due to Russia’s full-scale military invasion in 2022 exceeded $416 million.
Currently, the grain trader is operating at 32% of capacity, has created a special unit to clear agricultural land of mines, and has been forced to move its headquarters from Mykolaiv to Kyiv.
According to the National Bank of Ukraine (NBU), as of July 1, 2024, Oschadbank ranked 2nd (UAH 435.06 billion) in terms of total assets among 62 banks in the country. Last year, the financial institution’s net profit amounted to UAH 5.98 billion.
State-owned Oschadbank has increased the credit limit for Druzhba-Nova, the largest cluster of Kernel’s agricultural holding, by almost four times – from UAH 340 million to UAH 1.253 billion, the bank’s press service reports.
According to the report, the funds are provided to replenish the working capital of the agricultural producer. Thanks to the funds raised, the company will be able to ensure an effective harvesting and sowing campaign this year, which will lead to an increase in foreign exchange earnings from Ukrainian exports.
“Supporting the agricultural sector continues to be a priority for us during the war, as it is not only food security, but also one of the main drivers of our economy and foreign exchange earnings in Ukraine,” said Yuriy Katsiyon, Deputy Chairman of the Board of Oschadbank in charge of corporate business.
The bank clarified that the loan portfolio of the Kernel group of companies in Oschadbank is already over UAH 2.2 billion.
Druzhba-Nova is one of the largest land clusters of Kernel, which cultivates more than 110 thousand hectares in Sumy, Chernihiv and Poltava regions. It specializes in crop and livestock production.
Prior to the war, Kernel was the world’s largest producer of sunflower oil (approximately 7% of global production) and a major exporter (approximately 12%). It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in the cultivation and sale of agricultural products.
Kernel’s net profit for FY2023 amounted to $299 million, while the company ended the previous year with a net loss of $41 million. The agricultural holding’s revenue for FY2023 decreased by 35% to $3.455 billion, but EBITDA increased 2.5 times to $544 million.
In the first half of FY2024, Kernel’s net profit fell 3.6 times compared to the first half of FY2023 to $102 million, and EBITDA halved to $223 million on a 16% decline in revenue to $1.59 billion.
According to the National Bank of Ukraine (NBU), as of May 1, 2024, Oschadbank ranked 2nd (UAH 403.61 billion) in terms of total assets among 63 banks in the country. Last year, the financial institution’s net profit amounted to UAH 5.98 billion.
State-owned Oschadbank (Kyiv) earned UAH 8.81 billion in net profit in January-June 2024, up 29%, or almost UAH 2 billion, compared to the same period last year, the financial institution said on Tuesday.
“Such dynamics testifies to the effectiveness of the implementation of the military strategy of Oschad,” the state bank commented on the results.
It is specified that in January-June, the bank received UAH 2.7 billion of net profit from the revaluation of financial instruments in the securities portfolio, and in June, the net profit of Oschad amounted to UAH 74 million.
The bank’s net interest income increased by almost 26% to UAH 10.96 billion for the half-year, while net non-interest income increased by about 13% to UAH 4.09 billion.
“This result was achieved, in particular, due to the increase in lending to businesses and households: the respective loan portfolios of large corporations, micro, small and medium-sized businesses and individuals increased during the first six months of the year,” Oschadbank explains.
According to the release, the financial institution’s operating profit for the first half of 2024 exceeded UAH 7 billion, which is a quarter better than the result for the same period last year.
It is noted that Oschad has sufficient liquidity and capital at its disposal. In particular, the bank’s regulatory capital adequacy ratio (RCR) as of July 1, 2024 amounted to 14.35%, while the NBU’s established standard is 10%.
“We are pleased with the results achieved due to the stable operation of Oschadbank and successful adaptation to the wartime conditions. One of our main tasks now is to ensure that these results are even more beneficial to the real sector of the economy to ensure a stable recovery and further development of the country,” said Oschadbank Chairman of the Board Serhiy Naumov.
According to him, the bank is currently paying special attention to providing clients with affordable financial resources to restore energy infrastructure and strengthen energy independence of businesses and citizens.
According to the NBU, the bank’s net profit last year amounted to UAH 6.84 billion. As of June 1, 2024, Oschad ranked second in terms of total assets (UAH 415.82 billion) among 63 operating banks.
The National Bank of Ukraine (NBU) has imposed a penalty of UAH 33.76 million on state-owned Oschadbank, UAH 11.05 million on Pivdenny Bank and UAH 10.05 million on A-Bank, the regulator’s website reports.
According to it, Oschad was fined for improper organization of primary financial monitoring in terms of the obligation to develop, implement and update internal documents on the Law “On Prevention and Counteraction to Legalization (Laundering) of the Proceeds of Crime, Terrorist Financing and Financing of the Proliferation of Weapons of Mass Destruction” (AML/CFT) and the lack of procedures in them sufficient to ensure effective risk management.
It is noted that other reasons for the fine imposed on the financial institution include the bank’s failure to properly fulfill its obligation to implement an automation system, apply a risk-based approach, and verify new and existing customers.
Pivdenny Bank was fined for improper implementation of enhanced due diligence measures in relation to clients with high risk business relationships, untimely submission of documents at the NBU’s request to comply with the requirements of VAT/FT legislation, and failure to identify all the criteria for money laundering risk inherent in business relationships with clients.
A-Bank received a fine due to improper due diligence of the RIAs, new and existing customers, as well as improper application of a risk-based approach.
In addition, the central bank fined Diamond Pay LLC (TM DPAY, Dnipro) of Victoria Golubeva with a turnover of UAH 2.6 billion in 2023 for UAH 13.06 million for a number of violations in terms of primary financial monitoring. According to the company’s website, it is a service for organizing payment acceptance and online transfers, and its main services include payments on gambling websites, including Favbet.
State-owned PrivatBank, Oschadbank and Ukreximbank have purchased the largest amount of domestic government bonds since the beginning of Russia’s full-scale invasion and have become market leaders in terms of government bonds with UAH 316 billion, UAH 154.2 billion and UAH 130.5 billion, respectively.
“PrivatBank’s clients mainly invest in hryvnia domestic government bonds (64.5%) and US dollar bonds (33.7%). At the same time, 80% of clients reinvest in securities of the Ministry of Finance when redeeming government bonds,” the financial institution’s press service said.
PrivatBank noted that every third hryvnia of the 1 trillion hryvnia raised in government bonds since the beginning of the full-scale invasion of Russia was invested by the bank or its clients.
In its turn, Oschadbank clarified that UAH 154.23 billion in equivalent of the total portfolio of domestic government bonds, UAH 26.6 billion, was purchased since the beginning of 2024, UAH 65.29 billion in 2023, and UAH 62.34 billion in 2022.
The top three are followed by the state-owned Ukrgasbank, which purchased the equivalent of UAH 89.3 billion of domestic government bonds in the primary market.
Among the top ten banks in the country in terms of assets, FUIB and Sens Bank also published data on investments in domestic government bonds.
Thus, according to the information on FUIB’s website, the amount of investments of more than 2 thousand clients of the bank (both individuals and legal entities) in government bonds since the beginning of the full-scale invasion has reached 1.6 billion in national currency, while foreign currency portfolios amounted to more than $50.5 million and EUR10.5 million, respectively.
The press service of Sens Bank indicates that as of today, the financial institution’s portfolio of government bonds held by individual investors is over UAH 8.1 billion, which “corresponds to about 13% of the total portfolio of government bonds held by individual investors in the country.”
“(…) our bank’s clients, both individuals and business representatives, continue to actively invest in securities. Thus, in April this year alone, our clients purchased government bonds worth UAH 1.87 billion, of which UAH 1.6 billion were military bonds,” the bank noted.
Sens emphasized that clients prefer hryvnia bonds, as the bank’s information shows that in April this year, 53% of consumers preferred them.
Other banks from the “Big Ten” by assets as of April 1 this year – Raiffeisen, Ukrsibbank, Universal Bank (mono) and Credit Agricole – did not publish information on the volume of purchases of government bonds since the beginning of February 24, 2022 on their websites at the time of the publication of this material.
At the same time, Kredobank, the 14th largest bank by assets, reported that its clients have invested more than UAH 3 billion in government bonds since the beginning of the full-scale Russian aggression, and more than 70% of this amount was invested in military bonds.
Kredobank reminded that it was one of the first banks to cancel brokerage fees for the purchase of military bonds after the war started and reduced the minimum investment amount in government securities to UAH 50 thousand.
“The main preferences of Kredobank’s customers for 2024 are short-term, up to 1 year, military government bonds in national and foreign currencies. We also observe that after the maturity of the bonds, more than 50% of customers re-invest their funds, doubling the amount,” said Serhii Kucheriavyi, Director of the Liquidity and Securities Department of the bank.
As reported, the Ministry of Finance managed to lower interest rates by another 0.1-0.27 percentage points (p.p.) at auctions for the placement of domestic government bonds on Tuesday, May 21, bringing the total decrease to 0.92-1.37 p.p. after the National Bank cut the discount rate from 14.5% to 13.5% per annum on April 26.
According to the website of the Ministry of Finance, the cut-off rate for one-year securities decreased from 15.15% to 15.05%, for two-year securities – from 16.2% to 16.08%, and for three-year securities – from 17.2% to 16.93%.
