The European Bank for Reconstruction and Development (EBRD) approved a €150m financing package for three subsidiaries of Raiffeisen International Bank-Holding AG in Ukraine, Romania and Russia in order to support their lending to enterprises.
Under the package, subordinated loans attributable to Tier 2 capital will be provided as follows:
– €100 million equivalent to Raiffeisen Bank Aval in Ukraine (supplied in dollars);
– €25 million to Raiffeisen Bank in Romania;
– €25 million equivalent to Raiffeisenbank in Russia (supplied in dollars);
The investment is part of the joint pledge by the three international financial institutions to provide over €24.5bn in support of the banking sectors in the region and to fund lending to businesses hit by the global crisis.