The National Bank of Ukraine welcomes the acquisition of 100% of the shares of ASTRABANK PJSC by AGRO HOLDINGS (UKRAINE) LIMITED, a subsidiary of the investment fund managed by U.S. based NCH Capital (New Century Holding Capital).
On May 28, 2015, AGRO HOLDINGS (UKRAINE) LIMITED, which came up with the resolution proposal to “sell an insolvent bank to the investor” emerged as the winner in a public competitive bidding process involving eligible investors.
On July 16, 2015 the Deposit Guarantee Fund’s (hereinafter – the Fund) authorized officer signed an agreement on purchase/sale of 100% of the shares of ASTRABANK PJSC. It is the first time that the Fund has carried out the resolution of an solvent bank through its sale to an investor.
"NCH Capital is a well-known U.S.-based transnational investment group, and its coming to the banking market in the capacity of an investor could help unleash Ukraine's investment potential. The National Bank is open to international investors and prepared to offer concessions to foreign investors of similar grade who believe in Ukraine and intend to invest in the local market. We express our gratitude to Mr Robert Gibbins from the Autonomy Capital Fund for his willingness to contribute to the development of Ukraine’s banking sector and express regret that this time his plans to acquire KYIVSKA RUS PJSC failed to materialize,” said First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk.
As a side note, the National Bank of Ukraine has recently simplified the procedure for foreign direct investment funds and foreign public companies. In particular, the regulator has streamlined the acquisition procedure in respect of the purchase of banks for companies, and from now on public companies will not be subject to verification of the sufficiency of own funds. The National Bank of Ukraine wants to see eligible foreign investors among the owners of banks and these new legislative changes are intended to liberalize access to the banking market for top-grade investors.
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