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About Dropdown Description

World Bank building
About

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Learn More

Our Impact Dropdown Description

Hands husking peas into a basket full of peas
Our Impact

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Learn More

Our Products Dropdown Description

Young woman bending down to tending to her outside chores
What We Do

Explore different types of political risk insurance guarantees provided to investors and lenders.

Learn More

Projects Dropdown Descriptions

Hyundai building
Projects

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Search Projects
Ukraine

Joint Stock Commercial Bank Ukrsotsbank

$142.5 million
Banking
Project Brief
Not Active
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MIGA has issued a guarantee of $142.5 million to Bank Austria, a member of UniCredit Group, covering its shareholder loan to Joint Stock Commercial Bank Ukrsotsbank (USB) in Ukraine. The coverage is for a period of up to 11 years against the risks of transfer restriction, expropriation, and war and civil disturbance.  [1]

The project involves a subordinated shareholder loan of $150 million from Bank Austria to USB, Ukraine’s fourth largest bank. Bank Austria is responsible for UniCredit Group’s operations in central and Eastern Europe and is USB’s direct parent company. The loan will increase USB’s regulatory capital which will strengthen the bank and allow it to grow in a sustainable manner. USB has a well-developed and expanding customer franchise and plans to further develop its retail and SME banking business. 

One of the two pillars of the World Bank Group’s country partnership strategy for Ukraine is sustaining growth and improving competitiveness. This encompasses the need to deepen the financial sector and to improve its stability in order to facilitate business growth and spur private investment. Foreign participation in Ukraine’s banking sector is also expected to lead to a rapid transfer of product and credit-risk management expertise.

 

[1] The guarantee was cancelled on March 13, 2015.

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