OREANDA-NEWS. On 28 August 2008 IFC, a member of the World Bank Group, announced a new stage of partnership with OJSC Swedbank, a leading commercial bank in Ukraine. IFC Executive Vice President and CEO Lars Thunell has signed a loan agreement with the bank for on-lending to small and medium enterprises and residential mortgage borrowers.

IFC is providing a total of \\$70 million of loans to Swedbank and Swedbank Invest for its own account. IFC will also play a critical role in mobilizing parallel and syndicated loans of approximately \\$69 million in order to complete the financing package to the bank.

This is one of IFC’s largest investments in Ukraine’s financial sector and IFC’s first syndication for a Ukrainian financial institution. It will support expansion of credit to small businesses and potential home owners, with a focus on opportunities for people who live in areas outside Kyiv and cannot access financing under current market conditions.

“Partnership with IFC is highly important for Ukraine’s banking sector, since it creates opportunities for local financial institutions to grow while raising operational standards. I am proud that we have opened a new stage of cooperation between IFC and Ukrainian banks.  Support of the private sector and better access to finance remains priorities for Swedbank.  With IFC’s financing we will give a new impetus for small and midsize businesses in Ukraine,” said Sergey Tigipko, CEO of OJSC Swedbank.

IFC has worked with Swedbank in Ukraine since 2005, providing advisory services to help align the bank’s corporate governance with international standards. 

“We are very pleased to develop long-term cooperation with strong Ukrainian financial institutions that make smaller businesses a priority. Our partnership with Swedbank is an important example of how IFC can provide both investments and advice to meet our clients’ evolving needs,” said Thunell.