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Eng
25 November 2015

EBRD to acquire 30% stake in Raiffeisen Bank Aval

Kiev. November 25

EBRD participates in increasing the capital of a leading Ukrainian universal bank

 Raiffeisen Bank Aval increases tier 1 capital

 A powerful signal to the market

In accordance with the agreement signed today in Kiev, the European Bank for Reconstruction and Development (EBRD) acquires 30% of shares of Raiffeisen Bank Aval, one of the leading Ukrainian universal banks, which is a subsidiary of Raiffeisen Bank International AG (RBI).

The EBRD and the RBI will participate in the increase in tier 1 capital of Raiffeisen Bank Aval by UAH 3.15 billion (€ 122 million *). The question of increasing the capital will be submitted for approval at the general meeting of shareholders of Raiffeisen Bank Aval on December 3 of this year. As a result of the agreement, the EBRD will become the owner of 30% of the total number of shares of the Ukrainian bank.

The share of RBI in JSC "Raiffeisen Bank Aval" will decrease from 96.2% to approximately 67%. The exact figures will depend on the participation of minority shareholders, which currently number about 109 thousand, in the capital increase.

The EBRD's Managing Director in the financial institutions sector, Nic Tessiman, said: “With this investment, the EBRD strengthens the capital of Raiffeisen Bank Aval, thereby contributing to the much-needed recapitalization of the Ukrainian banking sector as a whole and deepening its long-standing cooperation with a large international banking group Raiffeisen Bank International. This partnership with RBI will strengthen the position of Raiffeisen Bank Aval as a major provider of modern high-quality banking services for businesses and individuals in Ukraine, which will help in unlocking the country's potential. ”

“The partnership with the EBRD is a confirmation of the stability and strength of Raiffeisen Bank Aval and proves that the RBI is on the right track in the difficult conditions in Ukraine,” said Karl Sevelda, Chairman of the RBI Board and Chairman of the Supervisory Board of Raiffeisen Bank Aval. “This transaction is further proof of the excellent cooperation between the EBRD and the RBI in the emerging markets of Central and Eastern Europe.”

As of September 30, 2015, the capital adequacy ratio of Level 1 of Raiffeisen Bank Aval was 6.86% by national standards, which is much higher than the standard set by the National Bank of Ukraine at 4.0% by national standards (which will increase to 7.0 % from January 1, 2019). After this transaction, the capital adequacy ratio of Raiffeisen Bank Aval Level 1 will be 14.19% by national standards (all preliminary indicators are based on the results of the 3rd quarter of 2015 and the actual exchange rate).

* At the exchange rate on November 23, 2015

Information about EBRD and RBI

The goal of the EBRD, which belongs to 64 countries and two intergovernmental organizations, is to support the development of a market economy and democracy in countries from Central Europe to Central Asia. Visit our website, as well as our Facebook and Twitter pages.

AO Raiffeisen Bank Aval provides services to more than 2.8 million customers, including individuals, corporate clients and SMEs, through its network of more than 600 branches throughout the country. Raiffeisen Bank International AG (RBI) is one of the leading corporate and investment banks in Austria, for which the “home” market is Central and Eastern Europe (CEE). RBI subsidiary banks operate in 15 markets in the region. In addition, the RBI group includes numerous providers of financial services in such areas as leasing, asset management, and mergers and acquisitions. A total of approximately 52,700 employees serve 14.8 million customers through approximately 2,800 branches and offices, most of which are located in CEE. RBI is a fully consolidated subsidiary of Raiffeisen Zentralbank Austria AG (RZB). RZB indirectly owns approximately 60.7% of the shares of the RBI, the remaining shares are in free circulation. Shares of RBI are listed on the Vienna Stock Exchange. RZB is the headquarters of Raiffeisen, Austria’s largest banking group, which serves as the head office for the entire RZB group, including RBI.

For more information, see

 Anton Usov (+380 44 277 1100, [email protected]) at the EBRD or

 Ingrid Krenn-Dietz (+43 1 71701 6055, [email protected]) in RBI