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UKRAINE-The European Bank for Reconstruction and Development, the biggest financial investor in Ukraine with €4.2 billion committed in 194 projects, is providing a subordinated loan of $150 million to Raiffeisen Bank Aval JSC, a subsidiary of Austria’s cooperative lender Raiffeisen International, and the third largest bank in Ukraine.

This project is part of the EBRD’s previously-announced €150 million long-term financing programme for Raiffeisen International‘s network banks in Ukraine, Romania and Russia. The 10-year subordinated loan will support Raiffeisen Bank Aval’s capital base, thus boosting the bank’s overall financial strength. This latest EBRD loan is a continuation of its support for the Ukrainian banking sector, which has reached over $700 million since the beginning of 2009.

Raiffeisen Bank Aval, which has over 1,000 business outlets across Ukraine, services nearly 4.8 million customers in both the corporate and private individual segments. “This subordinated loan provides additional proof of the deep commitment that both Raiffeisen International and the EBRD have to the CEE region,” said Herbert Stepic, CEO of Raiffeisen International. The additional resources will strengthen Ukraine’s banking sector and benefits the country’s economy.

Raiffeisen International operates one of the largest banking networks in CEE, covering 17 markets across the region through subsidiary banks, leasing companies and a range of other financial service providers. The group’s nearly 59,000 employees service around 15 million customers via more than 3,100 business outlets. Raiffeisen International is a fully-consolidated subsidiary of Raiffeisen Zentralbank Österreich (RZB).

Allan Saunderson is a managing editor of Property Finance Europe and a contributor to GlobeSt.com.

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