EBRD €122 million acquisition of 30% of Raiffeisen Bank Aval

Overview:

• The European Bank for Reconstruction and Development (EBRD) acquired 30% in Raiffeisen Bank International's (RBI) struggling Ukrainian arm, Raiffeisen Bank Aval, for €122 million.  
• EBRD's investment in Aval, which will improve its Tier 1 capital, was completed through a capital increase. 
• RBI was attempting to sell Aval in 2014 but cancelled the process after Russia annexed Chrimea. 
• Since Russia's incursion into east Ukraine, Aval has closed more than 100 branches in the country.
• Ukraine's banking system is in turmoil because of the country's struggling economy and depreciating currency, and more than 40 lenders closed in 2014/15.

Ben Naylor - Regional editor