The European Bank for Reconstruction and Development (EBRD) intends to assume up to 50% of the risk on newly issued loans to state-owned Ukrgasbank (Kyiv) totaling the equivalent of EUR50 million.
According to the EBRD on Monday, its board of directors planned to consider this project at a meeting on February 9, but has not yet made a final decision.
It is noted that the guarantee financing is planned to be provided in two equal tranches, with the second tranche not yet agreed, and the total amount of EBRD financing is EUR 12.5 million.
The project also includes a sub-limit of up to EUR 10 million, or 20% of the covered portfolio, to finance long-term investments by micro, small and medium-sized enterprises (MSMEs) to modernize their technologies and equipment in line with EU standards, including investments in green technologies (70% of the sub-limit), and to increase their competitiveness.
According to the EBRD, the facility will be mainly used to support lending to Ukrainian private companies operating in primary and secondary agriculture, as well as other critical sectors such as food processing, retail, and logistics.
According to the National Bank of Ukraine, as of December 1, 2023, Ukrgasbank ranked 5th in terms of assets (UAH 180.85 billion) among 63 banks operating in the country.
JSB “UKRGASBANK” sold the building of the Institute in Kyiv on Kurenivskyi Lane via OpenMarket electronic auction (SE “SETAM” of the Ministry of Justice of Ukraine). The sale price amounted to UAH 64,944,207.
The building of the Institute is located in the Obolon district of Kyiv, close to a park, post offices, public transport stops, the Pochayna metro station, shops, cafes and much more.
This is the 24th lot sold by the bank at the OpenMarket auction since the beginning of martial law, and the total amount of sales for this period was over UAH 142 million.
“Despite the difficult economic situation caused by Russia’s full-scale invasion of Ukraine, the real estate market is active in the segment of banking assets. Due to JSB “UKRGASBANK” flexible approach to real estate sales, as well as taking into account the “Dutch auctions” system introduced in 2021, the demand for JSB “UKRGASBANK” assets is at a consistently high level. JSB “UKRGASBANK” expresses its gratitude to SE “SETAM” for assistance in organizing sales, active support and effective cooperation, as the success in selling the Bank’s property directly depends on the quality of the auction organizer’s work,” said Daria Musych, Head of the Debt Settlement Department of Ukrgasbank.
“I would like to thank Ukrgasbank for their trust in our electronic auction. The bank is our constant and long-standing partner. Since the beginning of our cooperation, we have already sold the bank’s assets for over UAH 2.1 billion. The bank is one of our three most successful sellers,” said Oleksandr Mamro, CEO of SE SETAM.
The auction is available at the link: setam.net.ua/auction/539330
The OpenMarket auction (SE SETAM of the Ministry of Justice of Ukraine) is a simple and effective means of selling and purchasing property via the Internet. The online auction has been operating throughout Ukraine since 2014. The total amount of sales since its launch is UAH 21.6 billion.
Daria Musych, OPENMARKET, UKRGASBANK, Олександр Мамро, СЕТАМ
Profit of state-owned Ukrgasbank (Kiev) for January-November 2023 amounted to UAH 4.08 billion, while the same period last year the state bank ended with a net loss of UAH 3.75 billion, the financial institution reported on Tuesday.
It is specified that the operating profit of the bank for January-November this year before deductions to reserves and taxation amounted to UAH 4.3 billion.
According to the release, Ukrgasbank’s assets increased by UAH 35 billion since the beginning of the year and reached UAH 166.7 billion by the end of November 2023, while the portfolio of attracted customer funds increased by UAH 29.9 billion since January and amounted to UAH 142.7 billion.
It is specified that the most significant increase in the portfolio of funds of corporate business – by UAH 26.2 billion, up to UAH 85.5 billion, in particular, from small and medium-sized enterprises (SME) – by UAH 4 billion, up to UAH 25.4 billion.
The bank added that the portfolio of retail customers’ term funds in hryvnia amounted to UAH 9.8 billion at the end of November, having increased by UAH 3.5 billion since the beginning of the year.
According to the National Bank of Ukraine, as of October 1, 2023, Ukrgasbank ranked 5th in terms of total assets (UAH 166.44 billion) among 63 banks operating in the country.
The profit of the state-owned Ukrgasbank (Kyiv) in January-November 2023 amounted to UAH 4.08 billion, while the state-owned bank ended the same period last year with a net loss of UAH 3.75 billion, the financial institution reported on Tuesday.
It was specified that the bank’s operating profit for January-November this year before deductions to reserves and taxation amounted to UAH 4.3 billion.
According to the release, Ukrgasbank’s assets have increased by UAH 35 billion since the beginning of the year and reached UAH 166.7 billion as of November 2023, while the portfolio of attracted customer funds has increased by UAH 29.9 billion since January and amounted to UAH 142.7 billion.
It was specified that the portfolio of corporate business funds increased the most significantly – by UAH 26.2 billion to UAH 85.5 billion, in particular, from small and medium-sized businesses (SMEs) – by UAH 4 billion to UAH 25.4 billion.
The bank added that the portfolio of term deposits of retail business clients in hryvnia amounted to UAH 9.8 billion at the end of November, having increased by UAH 3.5 billion since the beginning of the year.
According to the National Bank of Ukraine, as of October 1, 2023, Ukrgasbank ranked 5th in terms of total assets (UAH 166.44 billion) among 63 banks in the country.
The state-owned Ukrgasbank has started issuing mortgage loans for housing in the primary real estate market under the eOselya program, the bank’s press service reports.
According to the report, the first partner of the bank is the developer Fedorchenko Construction Production and Commercial Company LLC with a facility in Sumy.
Since the launch of the state program “eHouse”, Ukrgasbank has issued loans for UAH 2.2 billion to 1.3 thousand families.
As reported, the eHouse affordable mortgage lending program was launched in Ukraine in October 2022. Contract servicemen of the Armed Forces of Ukraine, employees of the security and defense sector, healthcare workers, teachers, and scientists can apply for a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing.
Starting from August 1, war veterans, combatants, IDPs and citizens who do not have their own housing larger than the standard area can apply for the eHouse program at a 7% interest rate.
Seven partner banks participate in the eHouse program: Oschadbank, PrivatBank, Ukrgasbank, Globus Bank, Sky Bank, Ukreximbank and Sens Bank. You can apply for participation in the program using the Diia mobile application.
At the end of 2022, the government capitalized Ukrfinzhytlo by UAH 30 billion through the issuance of domestic government bonds. According to Deputy Prime Minister and Minister of Economy Yulia Svyrydenko, this funding is enough to issue 12-15 thousand mortgages in 2023.
At the end of April, the Ministry of Economy, as the sole shareholder of Ukrfinzhytl, approved repo transactions with these government bonds for up to a year in the amount of UAH 15 billion. Later it was reported that the rate on these transactions could be up to 20% per annum, while the government bonds themselves were issued for up to five years at a rate of 19.5% per annum.
State-owned Ukrgasbank has signed new loan agreements under the state program “Affordable Loans 5-7-9%” for UAH 110 million with Ukrcable Group, a leading cable manufacturer in Ukraine, the financial institution’s press service reports.
“Loan funds totaling UAH 110 million will be used to conduct current business activities, including the purchase of raw materials and supplies for the production of cable and wire products and the rhythmic loading of new equipment, which was also partially financed by the bank,” the statement said.
It is noted that the agreements were concluded as part of the continuation of the 3-year cooperation under the state program.
The bank notes that Ukrcable Group companies actively cooperated with the Kotsiubyno village council, Irpin city council and several military units both during the occupation of Kyiv region and during the recovery.
According to the bank, Ukrcable actively cooperates with electricity producers and suppliers to provide electricity to the population during power outages across the country.
According to the company’s website, Ukrkabel LLC (Kotsiubynske, Kyiv region) is capable of producing 150,000 km of cable per year, with a total area of 60,000 square meters, including 28,000 square meters of production capacity. According to OpenDataBot, the ultimate beneficiaries are Volodymyr Dovbenko (33.34%), as well as Halyna Bondar and Oleh Melnyk (33.33% each).
According to the National Bank of Ukraine, as of September 1, 2023, Ukrgasbank ranked 4th in terms of total assets (UAH 168.6 billion) among 64 banks operating in the country, with net profit for the first half of the year amounting to UAH 2.6 billion.
In the third quarter, the state-owned bank’s network decreased by one branch and now includes 218 structural units across the country.
