The largest deal of the year: PrivatBank was nationalized

19 December 2016

The Ukrainian government, represented by the Ministry of Finance has become the owner of 100% of the shares of PrivatBank, and ensured its smooth functioning and preservation of customer funds. According to Finance Minister Alexander Danyluk, Ukraine intends to sell PrivatBank after stabilization of its operations.

Under the agreement, the Ukrainian government bought PrivatBank for UAH 1. However, the Finance Ministry will issue bonds in amount of UAH 43 billion to capitalize PrivatBank. The maximum amount of capital increase will reach UAH 148 billion, the minimum – UAH 117 billion. Former Finance Minister, Oleksandr Shlapak will become the new head of the board of PrivatBank.

PrivatBank was founded in 1992. As of March 31, 2016, its largest shareholders were Gennady Bogolyubov (direct ownership - 33.2525% indirectly - 8.3244%) and Igor Kolomoisky (direct ownership- 41.6572% indirectly - 8.3244%), and the head of the bank Alexander Dubilet (2.7249%).

According to data of the National Bank of Ukraine, as of November 1, 2016, PrivatBank was the largest by total assets (UAH 271 billion) among the 108 banks operating in Ukraine. During the first 9 months of 2016 PrivatBank received a profit of UAH 590 million. The bank's liabilities are estimated at UAH 241 billion. Total customer funds amounted to UAH 195 billion, of which UAH 40 billion belongs to legal entities, UAH 155 billion are funds deposited by individuals. PrivatBank has the largest portfolio of borrowers (UAH 180 billion as of November 1, 2016) with UAH 155 billion - loans granted to companies and only UAH 24 billion - loans granted to the public.

At the end of the 3rd quarter of the authorized capital PrivatBank was UAH 21.26 billion, own capital–UAH 30.29 billion.

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