Kyiv, July 10, 2015. A large private British investor is ready to invest 100 million US dollars in a bank, established on the basis of the assets of PJSC "Kyivska Rus" Bank", insolvent since March 2015. At present, this investment into the Ukrainian banking sector, which badly needs new financial injections, is at risk of being deranged: for the investment to go ahead the Antimonopoly Committee and the National Bank of Ukraine have to grant requisite approvals through a fast-track procedure, introduced recently by the National Bank. According to the representatives of the investor, the fate of this investment, unprecedented in its timeliness, is now completely in the hands of the national banking regulator.
In April 2015, Robert Gibbins - an investor with a global investment portfolio who has worked on the Ukrainian market since 2007 - decided to purchase a transition bank, established on the basis of PJSC "Kyivska Rus" Bank". He intends to carry the deal through a company which was given a qualified investor status by the Individual Deposit Guarantee Fund.
"We are very familiar with the economy of Ukraine, we believe in its potential and are ready to bring foreign investments here. The bank we are purchasing will become a powerful technical and financial platform for future investments in agricultural, construction and energy sectors of Ukraine's economy. We appreciate Ukraine’s openness to international financing, and we hope that the Ukrainian banking regulator and other competent state authorities will facilitate the issuance of the necessary permits," said Robert Gibbins.
Notably, the investor is willing to pay 31 million hryvnas buy-out for the shares of a transition bank with the capital of just over 1.5 million hryvnas and further additionally invest in the bank about 100 million US dollars. It will also take over the financial obligations of the Individual Deposit Guarantee Fund before the private investors of PJSC "Kyivska Rus" Bank" for the amount of more than 1 billion hryvnia, and the payment of 450 million hryvnia received by the "Kyivska Rus" Bank" from the NBU as a refinancing loan. There is no doubt that thanks to this investment the state budget of Ukraine will be able to save considerable resources and use them to maintain the stability of the Ukrainian currency.
After the investor submitted all the documents for the acquisition of substantial participation in the transitional bank, NBU’s regulatory framework has undergone important changes, while the Head of the Antimonopoly Committee, which plays an important role in this important process, was replaced. As a result of these changes, the investor had to prepare the package of documents for the purchase of the bank anew from scratch, which significantly slowed down the process. At the same time, the Deposit Guarantee Fund’s procedure for the creation of transitional banks currently lacks consistency and congruence, as the investor is required to obtain the NBU’s approval for the purchase of substantial participation prior to the establishment of a transition bank, rather than after it has been created, as is required by the Law of Ukraine "On Banks and Banking Activity ". In addition, if the transition bank is not created within the prescribed period and is not purchased by the investor by July 20 of the current year, the “Kyivska Rus” Bank" will have to be liquidated. This will mean the cancellation of the investment.
Current Ukrainian legislation contains all the necessary provisions for a fast-track procedure for the obtainment by an investor of the approval for a significant share. Experts believe that it would be beneficial for the National Bank and the Deposit Guarantee Fund to take such a step, for it will allow it to secure a foreign investment and social calm, as well as save 2 billion hryvnas for the country.
For more details please call (063)725-22-22.
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