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Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
Raiffeisen Bank AVAL
Project ID
Fiscal year
Guarantee holder
Raiffeisen Bank International AG
Investor country
Host country
Environmental category
Date SPG disclosed
May 23, 2013
Project Board date
June 11, 2013
Gross exposure
 $142.5 million
Project type

View Summary of Proposed Guarantee

Project description

On June 24, 2013, MIGA issued a guarantee of $142.5 million covering a loan guarantee by Raiffeisen Bank International AG (RBI) of Austria in support of funds raised by its Ukrainian subsidiary Raiffeisen Bank AVAL (RBAV). The coverage is for a period of up to seven years against the risks of transfer restriction and expropriation of funds.

The state of Ukraine’s economy continues to remain delicate in the aftermath of the 2008 financial crisis as a result of spillover effects from its euro-zone neighbors.

The project will continue to bolster the capital base of a systemically important bank, strengthening the banking sector in Ukraine in a difficult macroeconomic environment.

RBAV provides new credit to the economy—in particular to corporates, farms, and small and medium enterprises that create jobs and foster economic activity and growth.

MIGA’s guarantee to the project is fully consistent with the World Bank Group’s Country Partnership Strategy for Ukraine that calls for job creation and the attraction of foreign direct investment to improve productivity and international competitiveness. It is also consistent with the goals of the Vienna 2 Initiative for countries of Central, Eastern and Southeastern Europe—through which MIGA seeks to support Western banks active in the region.

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