FINANCE AND BANKING
Finance and banking sector has always been in the focus of Ukrainian Financial Group as a key area for investment, playing an exceptionally important role in the process of carrying out the investment projects.
For the time being, UFG has invested US$ 22.8 million in its finance and banking activity. Furthermore, the Group’s member companies capitalised on over US$ 100 million of additional finance generated from investment projects.
During its activity in the finance and banking sector, UFG established and managed a number of banks, including Ukrainian Financial Group Bank (1992-1993), Vito (1994-1997), Kyiv International Bank (1995-1997), and Kyiv Investment Bank (1997-1999).
In particular, Kyiv International Bank was established jointly with European Bank for Reconstruction and Development, Poland’s Kredyt Bank, and local Bank Ukraina. UFG and EBRD were the principal founding partners, each owning 35 per cent in the Bank’s share capital that totalled ECU 5 million. The Bank was primarily founded for servicing international investment projects in the CIS and Baltic States. The project caused wide public attention both in Ukraine and abroad, with the opening ceremony attended by President Leonid Kuchma, Prime Minister Yevhen Marchuk, and UK Prime Minister John Major, as well as Ukrainian Government and Parliament members and foreign diplomats. From this project UFG gained a unique experience of a successful co-operation with the leading international financial and banking institutions, together with the expertise, required for the organisation of first-class banks in Ukraine and other former republics of the Soviet Union. In 1998 UFG sold its share in Kyiv International Bank to Rabobank and reinvested into new projects.
Kyiv Investment Bank was established in 1997 as a result of transformation of its predecessor, Vito Bank, into a full-service bank specialised in providing finance services to small and medium-size enterprises. Through the comprehensive management reorganisation and adoption of the best international practices, the bank won a solid position on the investment and finance market of Ukraine, becoming a viable, fully operational bank. In 2000 UFG sold its control share in Kyiv Investment Bank to Alpha Bank, Russia’s major commercial bank.
UFG closely co-operates with major foreign banks, financial institutions and investment companies such as Merrill Lynch, Bunker Trust Co., New Alliance, Bear Stearns & Co., Everen Securities, Deutsche Bank, United Overseas Bank, Johnson Mattey, Lloyd’s, Alpha Bank, and others.
UFG founded a subsidiary thet became one of Ukraine's first investment companies to access the US market. THe company's objectives included, among the other, targeting foreign investment for Ukraine, developing cooperation with foreign businesses, and conducting international financial operations. Another subsidiary, Trust-CApital, acted as a trust business and was involved in a number of privatization projects in Ukraine.
Ukrainian Financial Group is one of the few Ukrainian financial and credit institutions maintaining long-term correspondent relations with foreign banks. UFG was the first Ukrainian company to issue bearer shares, which provided valuable instrument to accumulate finance for investment projects and ensure efficient investment and finance management. The Group’s practice proves, that under Ukrainian economic conditions primarily direct equity investments and control share acquisitions provide a viable solution to improve the invested entities’ operational and financial performance and optimise their adaptability to rapidly changing market conditions.