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Pivdenyi Bank Syndicated Loan

Ukraine | Financial Institutions

Identification Code:: OP/07/0649
Total Operation Cost:: 45.000.000 USD
Maturity:: 12 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 USD – 08 May 2007
: BSTDB Signed Amount – Signed Date

10.000.000 USD – 22 May 2007
: Status:
Completed
Description and Purpose of the Operation:: Participation in a USD 45 million Syndicated Trade-related Term Loan to Bank Pivdennyi, Ukraine for financing and re-financing of Borrower's clients trade financing contracts.
Countries of Operation:: Ukraine (100,00%)
Financial Product:: Loans
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Pivdennyi was established in 1993 and is a midsize Ukrainian bank with a solid regional market position, headquartered in the city of Odessa located in south-western Ukraine, on the Black Sea. Pivdennyi ranks 19 largest by assets and 20 largest by capital among Ukrainian banks. Pivdennyi has a focused strategy and primarily targets corporate and SME customers in low volatile industries such as trade, food and beverages. Strong relationships with its clients help the bank to maintain a solid market presence in Odessa and the Odessa region and drive its expansion in other regions as well. The bank operates through 16 branches and 83 outlets, including branches in 12 regions outside Odessa. It has a c.25% market share in terms of loans and 26% in terms of deposits in Odessa region. The bank has built strong expertise in corporate and SME lending and will likely maintain its corporate orientation in the future.
Co-Financers/Participants:: Group of commercial banks (Standard Bank Plc, Commerzbank Aktiengesellschaft, JSC VTB Bank, Landesbank Berlin AG, FBN Bank (UK) Ltd, VTB Bank Europe plc, AMERICAN EXPRESS BANK LTD, The Bank of New York, Trade and Development Bank of Mongolia
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: Through this operation, the Bank demonstrates its continuing support to Ukraine's banking sector by financing the business development of an eligible banking institution that will in return extend credit to its trading clientele that would otherwise not be able to access BSTDB financing. The operation is expected to contribute to the business expansion of the Borrower that will have a positive spill-over effect to its SME clientele, local traders and many individual retail clients that are the market's most dynamic element of growth.
Environmental Classification and Impact:: In order to reduce/avoid any Environmental, Health & Safety (EH&S) impacts that potentially may arise from trade finance activities FI shall follow the BSTDB's Negative List of Goods, including the Environmental Exclusion List, and subject domestic legal requirements, as well as make sure that the Beneficiaries fully comply with these requirements. The Borrower shall immediately notify the Bank of occurrence of any incident or accident relating to any underlying export or import transaction of which the Borrower is, or ought to be aware, and which is likely to adversely affect the state of environment, and/or human health and safety.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org