Business news from Ukraine

INVESTOHILLS VESTA, EU, US CREATE $100 MLN SEED FUND TO INVEST IN UKRAINIAN BAD DEBT MARKET

The financial company Investohills Vesta, together with investors from the European Union and the United States, has created the Investohills Helianthus $100 million seed fund to invest in the Ukrainian market of distressed debts, the company said on its website.
According to the report, the first issue of shares of the relevant fund (in the amount of UAH 1 billion in June 2020) was approved by the National Securities and Stock Market Commission and distributed among investors.
Investohills Vesta will manage the fund’s activities in the interests of foreign investors, as well as provide them with a range of services in the field of redemption and collection of bad debts, litigation, storage and management of distressed and collateralized assets.
“The Ukrainian bad debt market is interesting to foreign funds specializing in such investments. But they are stopped by Ukraine’s specifics: weak protection of creditors’ rights at the level of legislation and the judiciary. Investohills Group and the fund… has offered a full cycle of support for investment-attractive deals with bad debts,” the founder and managing partner of the financial company, Andriy Volkov, said.
According to the release, on August 19, 2020, the fund closed its first deal, having bought out a portfolio of troubled assets of VTB, Rodovid and Financial Initiative banks from the Deposit Guarantee Fund for UAH 1.314 billion.

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UKRAINE RAISES CHARTER CAPITAL OF ENERGY EFFICIENCY FUND

The Cabinet of Ministers of Ukraine has amended the charter of the Energy Efficiency Fund, increasing its charter capital by UAH 1.119 billion, MP Oleksiy Honcharenko has said. “The Cabinet of Ministers has increased the charter capital of the Energy Efficiency Fund by UAH 1.119 billion,” he said on Telegram.
The decision will allow implementing 2,041 thermal modernization projects for multi-apartment buildings, the press service of the Ministry for Community and Territory Development said.
As reported, the national budget of Ukraine for 2019 foresees UAH 1.6 billion for the charter capital of the Energy Efficiency Fund.
The Energy Efficiency Fund intends within five years to finance more than 16,000 projects under the energy modernization program for the associations of co-owners of multi-apartment buildings.

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MTIBU’S VICTIM PROTECTION FUND DOUBLES IN 2018

The victim protection fund of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) almost doubled in 2018 compared with 2017, to UAH 1.204 billion, according to a report of the audit commission of the bureau. According to the report, the monthly contributions of MTIBU member insurance companies to the victim protection fund in 2018 increased 48.1%, to UAH 32.914 million, but the total basic guarantee fee decreased by 3.1%, to UAH 448.262 million.
According to the report of the audit commission, last year the additional guarantee fee DV1/DV2 increased 3.8 times, to UAH 308 million, the additional guarantee fee for the victim protection fund (10%) amounted to UAH 375.5 million.
The top 10 members of MTIBU account for 49% of contributions to the victim protection fund.
According to the report, in 2018, procedural insurance payments in claims in the amount of UAH 141.4 million were made from the victim protection fund, which is 25.2% more than a year earlier. At the same time, payments for bankrupt insurers fell by 45.7%, to UAH 3.765 million.
In addition, UAH 173.6 million was returned to the insurers which lost their membership in MTIBU, which is almost twice more than a year earlier. Costs for settling cases slightly increased and amounted to UAH 3.542 million, court costs came to UAH 7.13 million (a rise of 18.5%).

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ANDRZEJ RAJKIEWICZ FROM POLAND ELECTED HEAD OF SUPERVISORY BOARD OF ENERGY EFFICIENCY FUND

The supervisory board of the Energy Efficiency Fund has elected Andrzej Rajkiewicz its head, the press service of Deputy Prime Minister, Regional Development, Construction, Housing and Utilities Economy Minister of Ukraine Hennadiy Zubko has reported.
“Rajkiewicz was elected head of the supervisory board of the Energy Efficiency Fund – a person who has extensive experience in energy efficiency in Poland and other European countries. This decision was made at the first meeting of the fund’s supervisory board on December 17,” Zubko said.
According to him, the meeting also approved the rules of procedure for the meetings of the supervisory board, determined the procedure for selecting members of the directorate and the head of the internal audit unit, approved the action plan for 2018 and the first quarter of 2019. In addition, the announcement of the tender to select management is expected.
As reported, four members of the fund’s supervisory board have already been selected, the last one is expected to be defined – a representative from the European Union.
The Cabinet of Ministers of Ukraine selected its representatives in the supervisory board of the Energy Efficiency Fund: Deputy Finance Minister Yuriy Heletei and Director of the life-support systems economy department of the Regional Development, Construction, Housing and Utilities Economy Ministry Natalia Khotsianovska.
Winners of the tender to select independent members of the supervisory board of the Energy Efficiency Fund are Andrzej Rajkiewicz Миралинкс (Poland) and Yulia Sabatiuk (Ukraine).
Two representatives from the government, one representative from international donors and two independent representatives will be members of the supervisory board of the Energy Efficiency Fund. They are elected for five years.

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UKRAINE’S FOCUS ESTATE FUND BUYS ONE MORE THIRD SHOPPING CENTER IN POLAND

Focus Estate Fund investment fund (headquartered in Kyiv) has closed a deal on the acquisition of the Galeria Awangarda shopping center with a total area of 7,500 square meters in Bartoszyce (Poland), the company’s press service has said.
“With this investment, the fund increased its portfolio in the medium-sized retail real estate sector in Poland and the Czech Republic to five facilities with a total lease area of more than 34,000 square meters,” Managing Partner of Focus Estate Fund Andriy Kozyn said.
According to the report, the Galeria Awangarda shopping center was opened in April 2016, among its largest tenants are the stores Biedronka, Jysk, KIK, Deichmann, and ABRA.
According to the company, at the time of the deal, the vacancy of premises in the object was about 3%.
The press service said the transaction broker was KYHOS Real Estate s.r.o., the property manager was JLL, while legal support was provided by Czabański Gałuszyński i Partnerzy.
The company plans within two or three years to invest about EUR50 million in the development of medium-sized commercial property projects in Eastern Europe.

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U.VENTURES FUND INVESTS $1.15 MLN IN THREE STARTUPS (YOUTEAM, 3DLOOK, PUFETTO)

U.Ventures investment fund, founded by Western NIS Enterprise Fund, has invested $1.15 million in Ukraine’s startups YouTeam, 3DLook and Pufetto, the fund has said. “Ukraine has prominent product companies and startups that make revolutionary products and are highly competitive on a global market, and YouTeam, 3DLook, and Pufetto are dazzling examples of this. We are very pleased to invest in these startups and are convinced that they have a great potential to become leaders in its segments not only in Ukraine but worldwide,” President and CEO of Western NIS Enterprise Fund Jaroslawa Z. Johnson said.
3DLook, founded by Vadym Rohovsky, a serial entrepreneur from Odesa (the co-founder of the Clickky startup), in 2016, is an innovative solution for apparel retail and e-commerce that uses proprietary body measuring technology to make a perfect size and fit recommendations to consumers.
YouTeam, founded in Lviv in 2014, is a marketplace for hiring tech talent from software development firms.
Pufetto is a Ukrainian furniture manufacturer and e-commerce player that enables customers to customize its furniture (sofas, armchairs, beds) through its online platform and have it delivered to door within three of four weeks. Pufetto sells furniture through the proprietary online platform, as well as via show rooms in Ukraine and Germany.
Attracted investments will help startups to improve their products, hire new people and expand to new markets.

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