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Cooperation between IFC and the bank has already allowed implementing over 145 projects in the field of clean energy, the ministry said.
The Ministry of Finance of Ukraine says the International Finance Corporation (IFC) has begun preparations for entering the capital of the state-owned Ukrgasbank.
"The Ministry of Finance, the IFC, and the state-owned Ukrgasbank start assessing and structuring of the financial instrument for IFC's entry into the bank's capital, which was announced during the World Economic Forum in Davos," the ministry said on its website on February 4.
It is noted that this made possible due to the successful fulfillment by the Finance Ministry and Ukrgasbank of the terms of the Tripartite Memorandum of Understanding signed in November 2017 to support the privatization (sale) of the financial institution.
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According to the Memorandum, IFC strengthened the bank's corporate governance, ensured its operational independence, and further improved the permanent banking model based on commercial viability.
"IFC's entry into the capital of Ukrgasbank will be a powerful signal for foreign investors and contribute to the further development of the banking system as a whole," Ukraine's Finance Minister Oksana Markarova said on February 4.
The cooperation of IFC and the financial institution has already allowed implementing over 145 projects in the field of clean energy using biofuels, hydropower, solar, and wind energy with a total capacity of 866 megawatts, comprising a quarter of all renewable energy facilities in Ukraine. Thanks to these projects, CO2 emissions are reduced by more than 1 million tonnes annually, the ministry added.
UNIAN memo. Public Joint-Stock Company Joint Stock Bank Ukrgasbank (Kyiv) has been operating in the Ukrainian market since 1993. Following additional capitalization provided by the government in 2009, the bank's share held by the state, which is represented by the Finance Ministry, currently amounts to 95%.
Ukrgasbank in 2018 posted UAH 766 million, or US$27.6 million, in profit, which was 22.8% up from 2017.
In late January 2019, the International Finance Corporation confirmed its readiness to enter the capital of the state-run Ukrgasbank. Preparation works would begin in the coming months, it said.