IFC in Ukraine

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IFC in Ukraine

• Desmond OMaonaigh
• Project Manager
• Ukraine Banking
• Corporate Governance Project

13th June, 2005
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The World Bank Group
PUBLIC SECTOR
PRIVATE SECTOR
International Finance Corporation, 1956
Multilateral Investment Guarantee Agency, 1988
International Bank for Reconstruction and
Development, 1945
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IFC The Largest Financier for the Private Sector

• 176 member countries
• US18 billion portfolio
• Works exclusively with the private sector
• Development bank with flexibility of a commercial
  bank

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IFC Services

• Financial products
• loans, equity, guarantees
• Resource mobilization
• loan syndication and co-financing
• Advisory services
• country, industry, financial, technical advice
  and training

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IFC Portfolio as at 30 June, 2004
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IFC Project Financing
IFC provides 7-10 yr loans at affordable rates

New project ? 50 million
Up to 35 of project cost
New project ? 50 million
Up to 25 of project cost
Expansion or rehabilitation projects
Up to 50 of project cost
.
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Investment Sectors

• Financial markets
• Agribusiness and food processing
• Health and education
• Infrastructure
• Oil gas and chemicals
• Telecommunications
• Hotels
• Retail services

• Wood and wood products
• Automotive
• Electronics and appliances
• Information technology
• Building and construction materials
• Metals
• Mining

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How Can IFC Help?

• Regional and country knowledge
• Long-term financing at reasonable terms
• Contacts with local suppliers
• World Bank Group umbrella
• Global expertise and sector knowledge

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Ukraine at a Glance

• Area 603,700
  sq km
• Population 48 million
• Industry /GDP 31
• Agriculture/GDP 13
• Investment/GDP 20

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Attractive Investment Opportunity
Remarkable GDP Growth
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Attractive Investment Opportunity
Outstanding Macroeconomic Performance

• Low inflation rate
• Stable currency
• Improving creditworthiness
• Increasing direct foreign investment

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Attractive Investment Opportunity

• Raw Materials and Infrastructure
• Strong agricultural base
• Rich in minerals and natural resources
• Developed telecommunications
• Multiple viable transport routes
• Educated workforce
• Reliable banking payment system
• Availability of under-valued assets

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Structural Reforms
Attractive Investment Opportunity

• Privatization continuing
• Corporate income tax lowered
• Depreciation allowances increased
• New market-friendly legal framework
• Enhanced protection of property rights

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IFC Expanding Investment Program

• 5 offices in Ukraine , local staff 90
• Strong local team
• Established technical assistance network
• Projects in Corporate Governance, Leasing, SME
  Development, Agribusiness/Supply Chain
  Development

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IFC Investments

• First Lease US2 million
• HVB Ukraine - US22.4 million
• ProCredit Bank of Ukraine US7.2 million
• First Ukrainian International Bank US16.5
  million
• Venture Capital Fund Ukraine US3.5 million
• Myronivsky Poultry US110 million
• Nova Liniya US5 million

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IFC Investments

• Sandora Juice US10 million
• AVAL Bank US30 million
• Euroventures Ukraine Fund - US7.5 million
• AES US50 million

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Projects Under Development
Auto assembly
Cement
Supermarkets
Mortgage Finance
Drugstores
Banks
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Real Sector Priorities

• Agribusiness
• Food processing
• Poultry
• Edible oil
• Fruits and vegetables
• Dairy
• Supply Infrastructure

• Manufacturing Services
• Retail trade
• Tourism
• Automotive
• Metal products
• Construction materials
• Hotels
• Transport Infrastructure

• Telecom IT
• Equity financing to IT companies
• Cell-phones
• Fixed operators

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Financial Sector Priorities

• New products and services for local banks
• Development of leasing and insurance companies
• Housing finance

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Questions?