- Cerberus, EBRD and IFC announce acquisition of Poland's VeloBank
- 100 per cent of VeloBank's shares acquired from
Poland's Bank Guarantee Fund
- PLN 687 million injected into VeloBank to meet its regulatory
requirements
WARSAW,
Poland, Aug. 1, 2024 /PRNewswire/ -- An
affiliate of Cerberus Capital Management L.P. (Cerberus), the
European Bank for Reconstruction and Development (EBRD) and the
International Finance Corporation (IFC – member of the World Bank
Group) announce today the successful completion of the acquisition
of 100 per cent of shares in VeloBank from the Bank Guarantee Fund
in Poland, after having obtained
all the necessary approvals from all the relevant regulatory
authorities.
The acquisition follows an open, transparent, non-discriminatory
and competitive sale process launched by Bank Guarantee Fund in
2023.
The signing of the agreement opens up new growth opportunities
for VeloBank across business lines, thanks to VeloBank's
recapitalisation by the new owners with an amount of PLN 687
million and the removal of bridge bank status and related
restrictions imposed by the European Commission.
The sale of the bank does not in any way affect the situation
and service of customers. The funds accumulated in VeloBank S.A.
are invariably covered by the protection of the Bank Guarantee Fund
on the same principles as in other banks covered by the Polish
deposit guarantee system.
"We are very excited to invest into VeloBank and support its
participation in the dynamic Polish banking market," commented
Charles Dunlap, Cerberus Senior
Managing Director. "We are incredibly proud of the bank and its
talented employees, especially their drive for digital innovation
and customer-centric financial products. We believe that VeloBank
is well positioned to build on its successes and become a leading
bank for the Polish retail and business communities."
As part of taking control of the bank, a new Supervisory Board
has been appointed on August 1, 2024.
This board includes experts with many years of experience in the
financial sector.
"I am privileged to be involved in the most interesting banking
project on the Polish market. The unique competence of Cerberus as
specialist in financial institutions, as well as commitment and
strength of the EBRD and IFC, provide unprecedented sponsorship to
VeloBank's future. I believe the new Supervisory Board will be a
good partner for the Velo Team, providing inspiration and support
in further growth and development of the bank," said Jakub Papierski, Chairman of the Supervisory
Board at VeloBank.
The transaction strengthens the financial and operational
foundations of VeloBank, enabling its dynamic development in the
coming years based on the results achieved so far across all
business lines. Over the past two years, many strategic initiatives
have been launched to offer customers efficient and digital service
processes, expand the product range, and change credit processes.
Since VeloBank's inception, nearly 300,000 new customers have been
acquired, and since the beginning of 2023, deposits balances have
increased by PLN 16 billion. Since October
2022, the sale of personal loans has increased fourfold.
During the same period, the sale of mortgage loans has successfully
resumed, and the bancassurance offering has been dynamically
expanded, resulting in a significant and steady increase in
commission income. The bank has also rebuilt its offerings for
businesses and private banking.
"The team of VeloBank has successfully completed one of the most
challenging resolution processes in the history of European
banking, conducted in accordance with the highest standards, in
compliance with the letter of EU law. The sale of VeloBank was a
necessary and indispensable condition for the completion of the
resolution procedure, which ensures the stability of the entire
banking sector and simultaneously serves as a positive signal of
the safety of the Polish financial sector," noted Adam Marciniak, CEO of VeloBank.
"As VeloBank, we aim to systematically build an increasingly
stronger position in the Polish market. With ambitious
implementations, we will support the development of both individual
and corporate clients. We will also strive to enhance innovation
not only in the financial sector but in the entire Polish economy,"
he added.
Francis Malige, EBRD Managing
Director for Financial Institutions, said: "We are very happy to
see the investment in VeloBank successfully closed. It marks a new
beginning for and the end of a long and complex resolution process.
We are looking forward to this new stage in VeloBank's journey, and
to work with our co-investors and partners to support the bank's
growth and the development of its lending to the real economy in
Poland."
Ary Naïm, the World Bank Group Country Manager for Poland and IFC Manager for Central and
South Europe, said: "We are
pleased to contribute IFC`s equity and global expertise to this
important transaction, aligning with our strategic goal to
diversify financing options for the Polish economy. We look forward
to working with our partners and with VeloBank Management to
achieve this objective, with a focus on digital and green
finance."
About VeloBank
VeloBank is a universal bank offering modern financial solutions
for individual clients, private banking, SMEs, large enterprises,
and corporations, as well as public sector institutions. It is
among the top ten largest banks in Poland. VeloBank's strategy is based on
technology, including Gen AI solutions, aimed at enhancing the
convenience of both clients and employees. Comprehensive services
are provided across over 160 branches throughout Poland, as well as through advanced online and
mobile banking platforms. The offerings include current accounts,
loans, savings, investments, insurance, and numerous beyond banking
services. The bank's capital group has also launched VeloMarket, a
shopping platform featuring products beneficial for health and the
planet, aligning with the bank's strategy to support ecology.
The bank's innovation and brand quality are evidenced by
numerous awards, including the Golden Banker 2024 for personal
loans, the Business Insider Award, and the Master of Innovation
Leadership for VeloBank's leaders. The company also won
international competitions such as the Internal Communications
& Engagement Awards 2024 and the Banking Tech Awards 2023. HR
activities have been recognized in contests such as Solidny
Pracodawca 2023 and Friendly Workplace 2024, while the bank's
communication and marketing efforts have been honored in the
Marketing Director of the Year 2023, IN2SABRE Awards 2024, and CMO
Awards 2024 in the Digital Champion category.
About Cerberus
Founded in 1992, Cerberus is a global leader in alternative
investing with approximately USD 65
billion in assets across complementary credit, private
equity, and real estate strategies. The Firm invests across the
capital structure, where its integrated investment platforms and
proprietary operating capabilities create an edge to improve
performance and drive long-term value. Cerberus's tenured teams
have experience working collaboratively across asset classes,
sectors, and geographies to seek strong risk-adjusted returns for
its investors. Cerberus has an extensive track record of investing
in financial institutions globally and in Europe, including CCF and My Money Bank in France, Hamburg Commercial Bank in
Germany, and BAWAG in Austria.
Linklaters acted as a legal adviser to Cerberus.
About the EBRD
Set up to foster the private sector after the collapse of
Communism in eastern Europe, the
EBRD is active in 36 economies from central Europe to Central
Asia, the Western Balkans and the southern and eastern
Mediterranean and Lebanon. It is
the largest single investor in many of these countries, and also
mobilises significant foreign direct investment. It invests mainly
in private enterprises. In Poland,
to date the EBRD has invested more than €14.5 billion in 532
projects.
About IFC
IFC — a member of the World Bank Group — is the largest global
development institution focused on the private sector in emerging
markets. IFC works in more than 100 countries, using its capital,
expertise, and influence to create markets and opportunities in
developing countries. In fiscal year 2023, IFC committed a record
$43.7 billion to private companies
and financial institutions in developing countries, leveraging the
power of the private sector to end extreme poverty and boost shared
prosperity as economies grapple with the impacts of global
compounding crises. For more information, visit www.ifc.org.
Contact:
Cerberus
Jason Ghassemi
Chief Communications Officer
media@cerberus.com
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SOURCE Cerberus Capital Management, L.P.