Business news from Ukraine

STATE-OWNED UKREXIMBANK PUTS UP 16 REAL ESTATE OBJECTS FOR SALE WORTH UAH 1 BLN

The state-owned Ukreximbank (Kyiv) began selling non-core assets received as repayment of non-performing loans (NPL), in particular, it put up for sale 16 lots of real estate in Kyiv and regional centers with a total value of UAH 1 billion, Head of Restructuring and Recovery Department of Ukreximbank Oleh Lazovsky has said. “For the first time in the history of Ukreximbank, it begins the sale of non-core assets. These are mainly real estate, which the bank received as repayment of debt on NPL over ten years […] Some 16 lots have already been put up for sale through the SETAM trading system in the amount of over UAH 1 billion,” he said at a press conference hosted by Interfax-Ukraine.
According to Lazovsky, these objects were acquired by the bank in ownership back in 2009-2013, but the bank did not take measures to sell them.
Managing Partner of the National Electronic Stock Exchange Yevhenia Bozhko said that six out of 16 objects are located in Kyiv, and the rest are located in the regional centers of Ukraine, including Mykolaiv, Dnipro, Uzhgorod, Poltava, Khmelnytsky and Chernihiv.
“There are three architectural monuments in our pool of assets in Kyiv […] One of the architectural monuments is an object with an area of 5,400 square meters in the very center of Podil […] At present, it is an office center,” Bozhko said.
According to her, two more architectural monuments are located in the center of Kyiv, not far from the Independence Square (Maidan), and have a three-century history. The windows of one of the buildings overlook Mala Zhytomyrska Street, and the second – Sofiyivska Square, Bozhko said.
She said that the auction for the sale of 16 lots will be held on June 29 through the electronic platform OpenMarket of the state-owned enterprise SETAM and the acceptance of applications has already started.
Lazovsky added that Ukreximbank will hold such auctions in the future.
Ukreximbank was established in 1992, its sole owner is the state.
According to the National Bank of Ukraine, as of January 1, 2021, Ukreximbank ranked third in terms of total assets (UAH 246.877 billion) among 73 banks operating in the country.

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STATE-OWNED UKREXIMBANK ISSUES UAH 1 BLN LOANS UNDER AFFORDABLE LOANS 5-7-9% PROGRAM

State-owned Ukreximbank (Kyiv) has issued UAH 1 billion in loans under the Affordable Loans 5-7-9% program since the start of the program, the bank’s press service said on Wednesday.

“Almost every second loan under the program is aimed at capital investments in expanding the existing business, as well as supporting promising start-ups,” the press service said, citing Head of department of medium business and municipalities Semen Puskai.

It is indicated that half of the total amount of funds under the program are anti-crisis loans at 0% to ensure financing of the working capital of enterprises.

The bank added that refinancing of previously received loans at a reduced interest rate is actively used to reduce the debt burden on business.

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CENTRAVIS RAISES EUR 35 MLN FROM UKREXIMBANK TO FINANCE INVESTMENT PROGRAM

The state-owned Ukreximbank (Kyiv) has opened a long-term credit limit for Centravis Production Ukraine, part of Centravis Ltd., in the amount of EUR 35 million, which is equivalent to UAH 1.177 billion.
According to Centravis press release published on Thursday, March 4, the company is going to use these funds to produce new types of seamless pipes, introduce environmental and energy-saving technologies and further upgrade the production.
“The bank opened a credit limit of EUR 35 million for five years to maintain the high competitiveness of products in world markets as well as to ensure timely and full implementation of the investment program aimed at developing sales of high value-added products,” Director of Corporate Banking Department (private enterprises) at Ukreximbank Oleksandr Isniuk said, who is quoted by the press service.
In turn, Centravis CFO Alexandre Joseph added that raising funds in Ukreximbank would strengthen the company’s financial stability and would provide the opportunity to annually invest at least EUR 7 million in the development and output of new products.
“Since we work with world top brands, we need to be proactive and maintain focus on efficiency and customer service. We believe that cooperation with Ukreximbank is a classic win-win story for Ukraine. Our company exports over 98% of its products. The foreign exchange earnings amount to about EUR 150 million. This helps to improve the foreign trade balance of Ukraine and strengthen the ‘made in Ukraine’ presence in the world market,” Joseph said.
The press release recalled that despite the tailspin due to the coronavirus pandemic, Centravis maintained a stable position among the world’s best manufacturers of seamless pipes over 2020. The production volume amounted to 19,050 tonnes. The company doubled its EBITDA compared to 2019 — to EUR 14 million.
Centravis is one of the world’s largest manufacturers of seamless stainless steel pipes, founded in 2000. Its production facilities are located in Nikopol (Dnipropetrovsk region).
Centravis is one of the world’s top ten players, supplies products to ThyssenKrupp, BMW, Alstom, Linde, Samsung, Volkswagen and other companies. The company employs over 1,400 employees.
Ukreximbank, the sole owner of which is the state, was established in 1992. According to the National Bank of Ukraine, as of January 1, 2021, in terms of total assets (UAH 246.877 billion), Ukreximbank ranked third among 73 banks operating in the country.

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CENTRAVIS GETS EUR 35 MLN CREDIT TO FINANCE INVESTMENT PROGRAM

The state-owned Ukreximbank (Kyiv) has opened a long-term credit limit for Centravis Production Ukraine, part of Centravis Ltd., in the amount of EUR 35 million, which is equivalent to UAH 1.177 billion.
According to Centravis press release published on Thursday, March 4, the company is going to use these funds to produce new types of seamless pipes, introduce environmental and energy-saving technologies and further upgrade the production.
“The bank opened a credit limit of EUR 35 million for five years to maintain the high competitiveness of products in world markets as well as to ensure timely and full implementation of the investment program aimed at developing sales of high value-added products,” Director of Corporate Banking Department (private enterprises) at Ukreximbank Oleksandr Isniuk said, who is quoted by the press service.
In turn, Centravis CFO Alexandre Joseph added that raising funds in Ukreximbank would strengthen the company’s financial stability and would provide the opportunity to annually invest at least EUR 7 million in the development and output of new products.
“Since we work with world top brands, we need to be proactive and maintain focus on efficiency and customer service. We believe that cooperation with Ukreximbank is a classic win-win story for Ukraine. Our company exports over 98% of its products. The foreign exchange earnings amount to about EUR 150 million. This helps to improve the foreign trade balance of Ukraine and strengthen the ‘made in Ukraine’ presence in the world market,” Joseph said.
The press release recalled that despite the tailspin due to the coronavirus pandemic, Centravis maintained a stable position among the world’s best manufacturers of seamless pipes over 2020. The production volume amounted to 19,050 tonnes. The company doubled its EBITDA compared to 2019 — to EUR 14 million.
Centravis is one of the world’s largest manufacturers of seamless stainless steel pipes, founded in 2000. Its production facilities are located in Nikopol (Dnipropetrovsk region).
Centravis is one of the world’s top ten players, supplies products to ThyssenKrupp, BMW, Alstom, Linde, Samsung, Volkswagen and other companies. The company employs over 1,400 employees.
Ukreximbank, the sole owner of which is the state, was established in 1992. According to the National Bank of Ukraine, as of January 1, 2021, in terms of total assets (UAH 246.877 billion), Ukreximbank ranked third among 73 banks operating in the country.

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EIB TO PROVIDE ADDITIONAL EUR 20 MLN TO UKREXIMBANK

The European Investment Bank (EIB) will provide additional financing, namely a EUR 20 million loan, to be on-lent to local private businesses with a focus on small and medium-sized enterprises (SMEs), expanding the increase the funding limit to EUR 280 million.
“The European Investment Bank (EIB) has signed an agreement with the State Export-Import Bank of Ukraine (Ukreximbank) to increase the funding limit of the Deep and Comprehensive Free Trade Area (DCFTA) Support Facility project to EUR 280 million,” the EIB said in a press release on Friday.
“Additional financing, namely a EUR 20 million loan, will be provided via a parallel cross-currency swap in Ukrainian hryvnia (UAH) and will be on-lent to local private businesses with a focus on small and medium-sized enterprises (SMEs),” the EIB said.
The operation is part of Team Europe’s overall response to the COVID-19 crisis, which aims to support the sustainable social and economic recovery of the region.
“Improved access to affordable finance in local currency is one of our main priorities, especially at a time when SMEs need strong support to overcome the challenges and the liquidity shortfall created by the COVID-19 pandemic,” Head of the EIB Resident Representation for Ukraine Jean-Erik de Zagon said.
Chairman of the Management Board of Ukreximbank Yevhen Metsger said that the bank has a clear goal to direct additional financing to meet the specific and urgent needs of Ukrainian companies.
The EIB is an EU institution. It is owned by the EU member states. The EIB provides long-term financing.
The EIB has been operating in Ukraine since 2007. The country accounts for 60% of the bank’s lending activities in the Eastern Partnership countries.
Ukreximbank, the sole owner of which is the state, was established in 1992.

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UKREXIMBANK POSTS UAH 5.6 BLN NET LOSS

The net loss of state-owned Ukreximbank (Kyiv) in 2020 amounted to UAH 5.6 billion against a net profit of UAH 63.62 million in 2019, chairman of the bank’s board Yevhen Metsger has said in a column published by the Interfax-Ukraine agency.
According to him, in the fourth quarter of 2020, the bank’s net loss amounted to UAH 3.4 billion, which is 1.5 times more than in the corresponding period of 2019 (UAH 2.21 billion).
Metsger explained that Ukreximbank entered 2020 with a number of problems, in particular, a structural deformation of the balance sheet, a weak foreign exchange position, a significant amount of overdue debt, a pool of expensive borrowings in foreign markets, which led to the formation of a loss.
According to him, these problems were caused by political factors, and in the context of the pandemic, they were intensified by macroeconomic challenges.
In addition, the banker said that the bank’s operating model was set to automatically generate losses, in particular, the volume of loan bookings regularly exceeded operating income by an average of 50%.
“And this accumulated portfolio of toxic assets caused constant pressure on the financial result. Firstly, a sufficient level of reserves was not formed for it, and secondly, it does not generate interest income for the bank. Over 2020, expenses to cover expected losses from the credit risk of non-performing assets amounted to UAH 4.3 billion,” Metsger explained.

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