State-owned Oschadbank (Kyiv) has put up for sale the Atmosfera shopping mall and Ramada Encore Kyiv hotel in the capital, 11 land plots in Kozyn (Kyiv region) and the right of claim to Niteko LLC for UAH 1.79 billion through the OpenMarket electronic trading system (SE SETAM of the Ministry of Justice of Ukraine).
According to SETAM’s press service, the lot includes real estate in Kyiv at 103 Stolichne Shosse (buildings 1-4). They include an administrative and hotel center with an area of 39.5 thousand square meters, a shopping and entertainment center (31.6 thousand square meters) with a parking lot (16.8 thousand square meters), a two-level parking lot (17.5 thousand square meters) and other premises.
In addition, the lot also includes 11 land plots in Kozyn with a total area of 17.3 hectares for residential construction, as well as the rights to claim against LLC “Company Niteko” under the 2007 non-revolving credit line agreement, including the assignment of rights under security agreements.
“The well-known Kyiv shopping center and hotel are located at the intersection of three major highways towards the elite villages of Obukhiv district and Koncha Zaspa, so they are well served by traffic. This offer may potentially be of interest to major market players,” the press service quoted Oleksandr Mamro, CEO of SETAM, as saying.
The auction is scheduled for March 25. The guarantee fee is UAH 89.9 million.
According to Opendatabot, the owner of Niteko 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 Atmosfera 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 area, a karting center, a fitness center, a cinema with restaurant service and an event hall with 800 seats.
The developer of the Stolychnyi mixed-use 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 business center of B+ class with a total area of 22 thousand square meters and parking for 300 cars. The total area of the mixed-use complex is 158.2 thousand square meters.
State-owned Oschadbank ended 2023 with UAH 4.75 billion in net profit, 7.4 times higher than the financial result of 2022 (UAH 0.638 billion), the financial institution said in a press release on Monday.
“The final amount of net profit in 2023 was significantly affected by an increase in the corporate income tax rate for banking institutions (from 18% to 50%) (…), as well as a negative revaluation of derivatives – government bonds with an indexed value in the capital of Oschadbank in the amount of UAH 2.9 billion,” the financial institution explained.
Regarding the bonds, Oschadbank emphasized that their fair value is influenced by external factors beyond the bank’s control, such as exchange rates and interest rates.
It is indicated that the pre-tax profit of the state-owned bank amounted to UAH 9.5 billion, which is a historical maximum.
“Compared to last year’s figures, Oschadbank’s net interest income increased by 26% to almost UAH 19 billion, while net commission income increased by 14% to UAH 7 billion,” the release says.
According to the release, in the face of the national currency devaluation, the bank managed to keep its operating expenses at the same level as last year due to effective management of operating expenses.
At the same time, Oschad’s operating profit, before provisions for credit risks, revaluation of derivatives and taxation, amounted to UAH 12 billion, which is 52% higher than in 2022.
As for the volume of customer accounts, in 2023 it increased by 28% to UAH 300 billion. The bank specifies that the growth of stable term customer accounts was 26%, and their volume reached UAH 100 billion.
Over the four quarters of 2023, Oschad managed to increase its loan and investment portfolio by 16% to UAH 263 billion. In particular, retail loans increased by 30% to UAH 15 billion.
It is noted that at the same time, the state-owned bank maintained a consistently high level of liquidity to ensure the smooth implementation of all client payments.
“A balanced credit policy taking into account the risks of wartime and the gradual liberation of our land from the occupiers contributed to the improvement of the quality of the Oschadbank loan portfolio and the dissolution of UAH 1.4 billion of provisions for expected credit risks on interest-bearing assets,” the financial institution said in a release.
The press service of Oschadbank informed that the bank has sufficient liquidity and capital reserves. According to the data provided, the regulatory capital adequacy ratio of the state-owned bank as of January 1, 2024 is 16.57%, while the NBU standard is 10%.
State-owned Oschadbank (Kyiv), with financial support from the German government, is implementing the second phase of the project “Access to finance and sustainability support for MSMEs in Ukraine II”, which will finance more than 500 enterprises for EUR4.2 million, the bank’s press service said on Friday.
“German Sparkassenstiftung for International Cooperation is honored to have the opportunity to continue its support for Ukrainian businesses, which is very important for the development of the Ukrainian economy, especially during the difficult economic circumstances caused by the war. … Thanks to the second phase of the Project, more than 500 more companies will be able to receive financial support for the realization of their own business ideas,” said Eduard Schmitt, head of the representative office of the federal company Deutsche Gesellschaft für Internationale Zusammenarbeit (DSIK).
According to the state bank, under the project, internally displaced enterprises and businesses from the de-occupied territories will be able to receive compensation in the amount of 30% of the cost of the investment project, but not more than EUR30 thousand in hryvnia equivalent.
“For all other enterprises, the maximum amount of grant support is 20%, but not more than EUR20 thousand in hryvnia equivalent,” the report says.
According to the terms of the program, the participants can be enterprises with a positive credit history, with up to 250 employees and annual income up to EUR10 million, which have not received international technical assistance since February 1, 2022 and do not have debts to the state budget. Applications for participation are accepted in the branches of Oschad until January 31, 2024.
The press service recalled that the state Bank had a successful experience in the implementation of the first phase of the project during 2023.
“According to its results, the Bank’s clients received approval of grants from the German government for a total amount of more than UAH 52 million. According to this indicator, Oschad ranks first among all participants of the program. More than 62% of grantees are registered and carry out their activities in war-affected areas or in de-occupied territories”, – stated in the release of the financial institution.
It is specified that this project is implemented by Oschadbank within the framework of the international cooperation project ReACT4UA (“Application and Implementation of the Association Agreement between the European Union and Ukraine in the field of trade”) to provide grant support to MSME enterprises involved in economically important business areas for Ukraine: agriculture, food supply and processing, textile industry, processing industry, etc.
The project is financed by the German authorities and implemented by the German federal company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in cooperation with Deutsche Sparkassenstiftung für international Kooperation (DSIK) and the Entrepreneurship Development Fund (EDF).
According to the National Bank of Ukraine, as of November 1, 2023, Oschadbank ranked 2nd in terms of assets (UAH 346.85 billion) among 63 banks operating in the country and 1st second in terms of the number of branches (1182).
Access to finance and sustainability support for MSMEs in Ukraine II, OSCHADBANK, upport from the German government
Astarta Agroholding, Ukraine’s largest sugar producer, has raised up to $60m in a loan from state-owned Oschadbank for the construction of a soybean processing plant in the Poltava region.
“The raised funds will be used to finance an investment project to build a new soybean processing plant in Globino (Poltava region) to produce soy protein concentrate,” the company said on its website on Tuesday.
It is specified that the credit limit of $60 mln is granted to the agricultural holding for seven years.
As reported, the director of business development and investor relations of the group of companies Julia Bereshchenko at the conference-call with investors and analysts on the results of the company’s work for the first nine months of 2023 informed that investments for the construction of the plant will be distributed for three years – the current and two subsequent years. “Astarta intends to finance the project primarily through free cash flow. The Globino plant is expected to produce up to 100,000 tons of concentrated soy protein per year.
“Astarta” announced the start of construction of this line in mid-September 2021. The GPP itself was commissioned in early 2014, with a design processing capacity of 230 thousand tons per year. The plant is capable of producing about 160,000 tons of high-protein soybean meal, 40,000 tons of soybean oil and 9,000 tons of pelletized shell annually. The plant also includes finished product storage facilities and a 42,000-ton elevator and the necessary utilities, roads and railroads. Before the war, more than 80% of the GPP’s production was supplied to the EU, Middle and Far East countries. The main part of soybeans for processing is grown by agrofirms of the agroholding.
In the fall of 2021, Bereshchenko pointed out that the construction of an additional soybean deep processing line at GPP will double EBITDA in the soybean segment, as well as increase revenue.
“Astarta is a vertically integrated agro-industrial holding company operating in eight regions of Ukraine. It includes six sugar mills, agricultural farms with a land bank of 220,000 hectares and dairy farms with 22,000 cattle, an oil extraction plant in Globino (Poltava region), seven elevators and a biogas complex.
The agroholding earned EUR1.24 mln of net profit in the third quarter of 2023, which is 27.7 times less than in the same period of 2022. Astarta’s revenue decreased by 14.4% to EUR104.75m, gross profit decreased by 2.7 times to EUR26.96m, operating profit decreased by 7.6 times to EUR6.79m, and EBITDA decreased by 42.7% to EUR97.25m.
Thanks to a significantly better performance in the first half of this year compared to the first half of last year, for the first nine months of 2023 as a whole, net profit decreased by 9.8% to EUR55.97m on revenue growth of 14.8% to EUR392.00m. The company’s gross profit increased by 3.0% to EUR151.91m, while operating profit decreased by 15.9% to EUR79.91m and EBITDA by 10.8% to EUR116.63m.
Volodymyr Lavrenchuk, Head of the Ukrainian office of NEQSOL Holding, who headed Ukraine’s largest foreign bank, Raiffeisen Bank, in 2005-2019, has become the head of the Supervisory Board of state-owned Oschadbank (Kyiv), where he became an independent member in July this year following a government decision three months earlier.
“The renewed Supervisory Board of Oschadbank has started its work. At its first meeting, it elected Volodymyr Lavrenchuk as chairman,” the bank said in a statement on Tuesday.
It is specified that Lavrenchuk has 36 years of experience in the banking sector, including 27 years in the top management of Oschadbank and Raiffeisen Bank, and since 2020 he has been the head of the Ukrainian office of NEQSOL Holding with a focus on investment and portfolio management and a member of the Supervisory Board of Vodafone Ukraine.
According to the release, Lavrenchuk also chaired the Nomination and Remuneration Committee, while the Risk and Compliance Committee was chaired by independent Supervisory Board member Elizabeth Nelson, who was Vice President of Risk Management and Compliance, Chief Risk Officer at the European Bank for Reconstruction and Development in 2012-2019.
Her colleague Juan Enrique Pérez Calota chaired the Audit Committee, while Oleksandr Rodnyansky, a member of the Supervisory Board and representative of the President of Ukraine, became the chairman of the Strategy and Transformation Committee.
Oschad reminded that as a result of the renewal of the Supervisory Board’s composition among independent members provided for by the current legislation, four financial market experts – Michal Krupinski, Lavrenchuk, Nelson and Philip Heasley – joined the Supervisory Board, while Perez Kalota and Anton Pyatigin retained their seats on the Supervisory Board.
In addition, the Supervisory Board also includes three government representatives – Yulia Pashko from the Verkhovna Rada Committee, Rosa Tapanova from the Cabinet of Ministers, and Rodnyansky from the President of Ukraine.
According to the National Bank of Ukraine, as of September 1, 2023, Oschadbank ranked second in terms of total assets (UAH 337.99 billion) among the 64 operating banks in the country and first in terms of the number of branches – 1182.
The net profit of the state-owned Oschadbank (Kyiv) in January-September 2023 amounted to UAH 14.18 billion, which is 6 times higher than the same period in 2022, according to the bank’s interim condensed report for the third quarter.
According to the report, the state-owned bank’s net profit for the third quarter amounted to UAH 7.34 billion, which is UAH 3.04 billion more than in the second quarter of this year and UAH 0.56 billion more than in the third quarter of last year.
According to the report, Oschadbank’s net interest income increased by 32.2% year-on-year to UAH 13.89 billion in January-September 2023, including a 24.4% increase to UAH 4.95 billion in the third quarter, which is UAH 0.75 billion more than in the second quarter of this year.
Net fee and commission income for the first nine months of this year increased by 24.8% to UAH 5.07 billion, including 0.3% to UAH 1.75 billion in Q3. Meanwhile, in April-June this year, this figure was equal to UAH 1.65 billion.
A significant contribution to the improvement of the bank’s financial result was made by the dissolution of provisions for expected credit losses on assets: for the first 9 months of this year, it amounted to UAH 1.4 billion, including UAH 0.16 billion in the third quarter, while for the same period last year, Oschadbank formed additional provisions of UAH 9.61 billion and UAH 4.20 billion, respectively.
The state-owned bank also reports that its total profit for January-September this year reached UAH 14.23 billion, 6.7 times higher than in the comparable period of 2022. In the third quarter of 2023, total profit increased by 9.2% compared to the third quarter of last year and by 69.1% compared to the second quarter of this year.
According to the report, in 9M2023, the bank’s assets increased by 16.9%, reaching UAH 314.78 billion by September 30. This growth is attributed to the increase in cash, correspondent accounts and funds with the NBU from UAH 28.36 billion to UAH 62.56 billion. In addition, according to the report, the volume of investments increased by UAH 10.07 billion to UAH 153.45 billion.
As for loans to customers, they grew by 3.1% to UAH 83.03 billion in the third quarter, but still remain below the figure of UAH 83.22 billion in July-September last year. Of this amount, UAH 62.07 billion was granted to corporate entities, UAH 7.54 billion to government and local authorities, and UAH 4.55 billion in mortgage loans.
Over the first nine months of 2023, Oschadbank’s customer accounts increased from UAH 233.94 billion to UAH 268.89 billion, while banks’ accounts decreased from UAH 0.54 billion to UAH 0.24 billion.
The equity of the financial institution increased by UAH 14.04 billion to UAH 36.2 billion in the first nine months of this year.
According to the National Bank of Ukraine, as of September 1, 2023, Oschadbank ranked second in terms of total assets (UAH 337.99 billion) among 64 operating banks in the country and first in terms of the number of branches – 1182.
