Ukrainian Business Development News
Asters, August 5, 2008

IFC COULD GIVE ANOTHER USD 45M CREDIT TO DELTA-WILMAR CIS TO EXPAND PRODUCTION FACILITIES

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, plans to give a USD 45 million credit to Delta-Wilmar CIS to expand its production facilities and develop infrastructure at a palm oil refinery at the Yuzhny port in Odesa, as it reported on July 18.

The value of the project is estimated at USD235 million. It is expected that the board of directors would consider the issuing of the funds on August 25, 2008.

Delta-Wilmar CIS is a joint venture of the Singapore company Delmar Pte Limited (100%).

VIDI GROUP TO INVEST USD270M IN CONSTRUCTION OF THREE CAR CENTERS

ViDi Group plans to invest USD 270 million in construction of three car centers in Kyiv, Boryspil and Odesa, as it announced on July 22.

ViDi AutoCity Orbital Road car center would be located on seven hectares. It would consist of four car dealer centers, one of which the Toyota Center Kyiv Highway has operated since March 2007. The car center will also have Ford and Nissan dealer centers. A test-drive road for SUVs would be located in the center.

The construction of three centers started in 2008. They would be commissioned in late 2008 or early 2009. Investment in the project is USD 100 million.

The ViDi AutoCity Boryspil car center will be located on 4.5 hectares on the Kyiv-Boryspil international airport highway. It would unite five dealer centers, including those of Honda and Mazda. The ViDi AutoCity Odesa car center will be located on 10 hectares and would unite seven dealer centers, among which would be those of Honda and Ford.
ViDi Group was founded in 1994 by Vitaliy Dzhurynsky.

RAIFFEISEN BANK AVAL RAISES USD200 M IN SYNDICATED LOAN

Kyiv-based Raiffeisen Bank Aval plans to raise a syndicated loan worth USD200 million, as it said on July 24.

The syndicated loan is organized by Bayerische Landesbank (Germany), the Bank of Tokyo Mitsubishi UFJ (Japan), HSBC Bank (the United Kingdom), and Standard Bank PLC (the United Kingdom). Eighteen banks participated in the loan syndication.

MONOLIT CONSTRUCTION ALLIANCE TO INVEST AROUND USD20M IN BUILDING OF HOTEL COMPLEX IN CRIMEA

Ukrmestpromproject, part of the Monolit Construction Alliance Group (both based in Kharkiv), plans in October 2008 to start building a hotel complex in Koktebel in Crimea, as it announced on July 29.

Ukrmestpromproject has started drawing up the design of the hotel, on a 1.5 hectare site on the coast of Koktebel (the former territory of the Khimik recreation camp). The company said that the project is estimated to be worth USD 17-20 million.

The four-level hotel would have 100 sea-side rooms. The hotel would have a conference hall, a SPA-center, a parking area, a restaurant and five swimming pools: one large and four small ones.

AXA GROUP TO INVEST AROUND EUR 20M IN UKRAINIAN INSURANCE ALLIANCE, VESKO

France's AXA Group plans to invest around EUR 20 million in CJSC Vesko Insurance Company and CJSC Ukrainian Insurance Alliance (both based in Kyiv), as it announced on August 1. AXA Group plans to set up a life insurance company in Ukraine.

The share of Kharkiv-based UkrSibbank, which owns around 49% of shares in both insurance companies, is around 50% in the bank insurance portfolio of the AXA Insurance, and the figure is continually growing.

The Ukrainian Insurance Alliance has been working on the Ukrainian market since 2001. Its regional network has 39 representative offices covering all of the country's regions.

SBERBANK'S UKRAINIAN SUBSIDIARY TO RAISE AT LEAST USD 30 M IN SYNDICATED LOAN

Kyiv-based CJSC Sberbank of Russia (formerly CJSC NRB Bank), which is a subsidiary of Sberbank of Russia in Ukraine, is considering the possibility of raising a debut syndicated loan worth at least USD 30 million, as it reported on August 4. The syndicated loan might be raised for 12 months with a 12-month prolongation.

 

Asters Advises Swedbank on Registration
of the First Banking Holding Group in Ukraine

Asters has acted as a Ukrainian counsel to Swedbank AB in connection with establishing by its Ukrainian subsidiaries OJSC Swedbank (formerly TAS-Kommerzbank) and CJSC Swedbank Invest (formerly TAS-Investbank) of the first Ukrainian banking holding group Swedbank Finance.

Asters’ team assisting Swedbank in drafting and negotiating all necessary documents, obtaining regulatory approvals and registration of Swedbank Finance with the National Bank of Ukraine, was led by partners Svitlana Poroschuk and Armen Khachaturyan and included associates Yevgen Porada, Yuriy Pavlyshynets and senior associate Leonid Antonenko. The merger clearance was handled by associate Tetyana Buchko supervised by partner Igor Svechkar.